3525 turtle creek due diligence package · 2017 3525 turtle creek due diligence ... the inspector...

2017

3525 TURTLE CREEK DUE DILIGENCE PACKAGE

3525 TURTLE CREEK BLVD, UNIT 17B DALLAS, TX 75219

PRESENTED BY: HERITAGE AUCTIONS

855-261-0573

[email protected]

3525 Turtle Creek Due Diligence Package

3525 TURTLE CREEK DUE DILIGENCE PACKAGE

TABLE OF CONTENTS

Page Document

о Features

п Floor Plan/Site Plan/Site Map

у Exclusions

ф Seller’s Disclosure

му Lead-Based Paint Disclosure

мф Inspec on Report

4л Tax Appraisal

4о Condominium Resale Cer ficate

4п HOA Owners Handbook

у3 HOA Governing Documents

14о Title Examiner’s Report

1пу Auc on Purchase Agreement

1рс Sample Bank Le er of Guarantee

1ру Bidder Registra on Agreement


FEATURES

3525 Turtle Creek Blvd Apt 17B

White glove service: 24-hour valet and doorman, concierge and security 2 Master bedrooms 2 full en suite baths 1 half bath 3,671 sq ft 2 garage spaces 2 Living Areas 17th Story Formal Dining Room Breakfast Bar Butler’s Pantry with stone counter Eat-in Kitchen with Granite Countertops, Island Custom Closet System in master bedrooms, Jetted Tub Linen Closet Separate Shower Sitting Area in Master Walk-in Closets Kitchen Equipment: Built-in Refrigerator/Freezer, Convection Oven, Cooktop - Electric, Dishwasher,

Disposal, Double Oven, Indoor Grill, Vent Mechanism, Warmer Oven Drawer, Water Line to Refrigerator, trash compactor

Large wet bar with fridge close to den Cable TV Available Elevator High Speed Internet Available Paneling Plantation Shutters Sound System Wiring


SITE PLAN/SITE MAP

rochellem

Oval


EXCLUSIONS

All personal property and furnishings will be retained by the seller.


SELLER’S DISCLOSURE

rochellem

Text Box

rochellem

Text Box


LEAD‐BASED PAINT DISCLOSURE

rochellem

Typewritten Text

Please call 214-409-1384 for this disclosure

rochellem

Typewritten Text

rochellem

Rectangle


INSPECTION REPORT

DFW Home Inspections LLC 214-577-5155

www.dfwhomeinspections.com

[email protected]

INSPECTED FOR

Elizabeth Jeffett

3525 Turtle Creek #17B

Dallas, TX 75219

October 2, 2017

http://www.dfwhomeinspections.com/

http://www.dfwhomeinspections.com/

mailto:[email protected]

rochellem

Text Box

REI 7-5 (05/4/2015)

DFW Home Inspections LLC 6333 E Mockingbird, Suite 147-755 Dallas, TX 75214

Phone: 214-577-5155 Fax:

Email: [email protected]

PROPERTY INSPECTION REPORT

Prepared For: Elizabeth Jeffett

(Name of Client)

Concerning: 3525 Turtle Creek #17B, Dallas, TX 75219

(Address or Other Identification of Inspected Property)

By: Jeff Hanna, Lic #8768 10/02/2017

(Name and License Number of Inspector) (Date)

(Name, License Number of Sponsoring Inspector)

PURPOSE, LIMITATIONS AND INSPECTOR / CLIENT RESPONSIBILITIES

This property inspection report may include an inspection agreement (contract), addenda, and other information related to

property conditions. If any item or comment is unclear, you should ask the inspector to clarify the findings. It is important that

you carefully read ALL of this information.

This inspection is subject to the rules (“Rules”) of the Texas Real Estate Commission (“TREC”), which can be found at

www.trec.texas.gov.

The TREC Standards of Practice (Sections 535.227-535.233 of the Rules) are the minimum standards for inspections by TREC-

licensed inspectors. An inspection addresses only those components and conditions that are present, visible, and accessible at

the time of the inspection. While there may be other parts, components or systems present, only those items specifically noted

as being inspected were inspected. The inspector is NOT required to turn on decommissioned equipment, systems, utility

services or apply an open flame or light a pilot to operate any appliance. The inspector is NOT required to climb over

obstacles, move furnishings or stored items. The inspection report may address issues that are code-based or may refer to a

particular code; however, this is NOT a code compliance inspection and does NOT verify compliance with manufacturer’s

installation instructions. The inspection does NOT imply insurability or warrantability of the structure or its components.

Although some safety issues may be addressed in this report, this inspection is NOT a safety/code inspection, and the inspector

is NOT required to identify all potential hazards.

In this report, the inspector shall indicate, by checking the appropriate boxes on the form, whether each item was inspected, not

inspected, not present or deficient and explain the findings in the corresponding section in the body of the report form. The

inspector must check the Deficient (D) box if a condition exists that adversely and materially affects the performance of a

system or component or constitutes a hazard to life, limb or property as specified by the TREC Standards of Practice. General

deficiencies include inoperability, material distress, water penetration, damage, deterioration, missing components, and

unsuitable installation. Comments may be provided by the inspector whether or not an item is deemed deficient. The inspector

is not required to prioritize or emphasize the importance of one deficiency over another.

Some items reported may be considered life-safety upgrades to the property. For more information, refer to Texas Real Estate

Consumer Notice Concerning Recognized Hazards or Deficiencies below.

THIS PROPERTY INSPECTION IS NOT A TECHNICALLY EXHAUSTIVE INSPECTION OF THE STRUCTURE,

SYSTEMS OR COMPONENTS. The inspection may not reveal all deficiencies. A real estate inspection helps to reduce some

of the risk involved in purchasing a home, but it cannot eliminate these risks, nor can the inspection anticipate future events or

changes in performance due to changes in use or occupancy. It is recommended that you obtain as much information as is

available about this property, including any seller’s disclosures, previous inspection reports, engineering reports,

building/remodeling permits, and reports performed for or by relocation companies, municipal inspection departments,

lenders, insurers, and appraisers. You should also attempt to determine whether repairs, renovation, remodeling, additions, or

other such activities have taken place at this property. It is not the inspector’s responsibility to confirm that information

obtained from these sources is complete or accurate or that this inspection is consistent with the opinions expressed in previous

Promulgated by the Texas Real Estate Commission (TREC) P.O. Box 12188, Austin, TX 78711-2188 (512) 936-3000

(http://www.trec.texas.gov).

Page 1 of 19

mailto:[email protected]

http://www.trec.texas.gov/

http://www.trec.texas.gov/

rochellem

Rectangle

Report Identification: Turtle Creek #17B 3525-20171002, 3525 Turtle Creek #17B, Dallas, TX

Page 2 of 19

REI 7-5 (05/4/2015)

or future reports.

ITEMS IDENTIFIED IN THE REPORT DO NOT OBLIGATE ANY PARTY TO MAKE REPAIRS OR TAKE OTHER

ACTIONS, NOR IS THE PURCHASER REQUIRED TO REQUEST THAT THE SELLER TAKE ANY ACTION. When a

deficiency is reported, it is the client’s responsibility to obtain further evaluations and/or cost estimates from qualified service

professionals. Any such follow-up should take place prior to the expiration of any time limitations such as option periods.

Evaluations by qualified tradesmen may lead to the discovery of additional deficiencies which may involve additional repair

costs. Failure to address deficiencies or comments noted in this report may lead to further damage of the structure or systems

and add to the original repair costs. The inspector is not required to provide follow-up services to verify that proper repairs

have been made.

Property conditions change with time and use. For example, mechanical devices can fail at any time, plumbing gaskets and

seals may crack if the appliance or plumbing fixture is not used often, roof leaks can occur at any time regardless of the

apparent condition of the roof, and the performance of the structure and the systems may change due to changes in use or

occupancy, effects of weather, etc. These changes or repairs made to the structure after the inspection may render information

contained herein obsolete or invalid. This report is provided for the specific benefit of the client named above and is based on

observations at the time of the inspection. If you did not hire the inspector yourself, reliance on this report may provide

incomplete or outdated information. Repairs, professional opinions or additional inspection reports may affect the meaning of

the information in this report. It is recommended that you hire a licensed inspector to perform an inspection to meet your

specific needs and to provide you with current information concerning this property.

TEXAS REAL ESTATE CONSUMER NOTICE CONCERNING HAZARDS OR DEFICIENCIES

Each year, Texans sustain property damage and are injured by accidents in the home. While some accidents may not be

avoidable, many other accidents, injuries, and deaths may be avoided through the identification and repair of certain hazardous

conditions. Examples of such hazards include:

malfunctioning, improperly installed or missing ground fault circuit protection (GFCI) devices for electrical

receptacles in garages, bathroom, kitchens, and exterior areas;

malfunctioning arc fault protection (AFCI) devices;

ordinary glass in locations where modern construction techniques call for safety glass;

malfunctioning or lack of fire safety features such as, smoke alarms, fire-rated doors in certain locations, and

functional emergency escape and rescue openings in bedrooms;

malfunctioning carbon monoxide alarms;

excessive spacing between balusters on stairways and porches;

improperly installed appliances;

improperly installed or defective safety devices;

lack of electrical bonding and grounding; and

lack of bonding on gas piping, including corrugated stainless steel tubing (CSST).

To ensure that consumers are informed of hazards such as these, the Texas Real Estate Commission (TREC) has adopted

Standards of Practice requiring licensed inspectors to report these conditions as “Deficient” when performing an inspection for

a buyer or seller, if they can be reasonably determined.

These conditions may not have violated building codes or common practices at the time of the construction of the home, or

they may have been “grandfathered” because they were present prior to the adoption of codes prohibiting such conditions.

While the TREC Standards of Practice do not require inspectors to perform a code compliance inspection, TREC considers the

potential for injury or property loss from the hazards addressed in the Standards of Practice to be significant enough to warrant

this notice.

Contract forms developed by TREC for use by its real estate licensees also inform the buyer of the right to have the home

inspected and can provide an option clause permitting the buyer to terminate the contract within a specified time. Neither the

Standards of Practice nor the TREC contract forms requires a seller to remedy conditions revealed by an inspection. The

decision to correct a hazard or any deficiency identified in an inspection report is left to the parties to the contract for the sale

or purchase of the home.


Page 3 of 19

REI 7-5 (05/4/2015)

INFORMATION INCLUDED UNDER "ADDITIONAL INFORMATION PROVIDED BY INSPECTOR", OR

PROVIDED AS AN ATTACHMENT WITH THE STANDARD FORM, IS NOT REQUIRED BY THE COMMISSION

AND MAY CONTAIN CONTRACTUAL TERMS BETWEEN THE INSPECTOR AND YOU, AS THE CLIENT. THE

COMMISSION DOES NOT REGULATE CONTRACTUAL TERMS BETWEEN PARTIES. IF YOU DO NOT

UNDERSTAND THE EFFECT OF ANY CONTRACTUAL TERM CONTAINED IN THIS SECTION OR ANY

ATTACHMENTS, CONSULT AN ATTORNEY.

ADDITIONAL INFORMATION PROVIDED BY INSPECTOR

Inspection Time In: 9:00 am Property was: Vacant, BUT staged with furniture.

Building Orientation (For Purpose Of This Report Front Faces): North

Weather Conditions During Inspection: Sunny

Outside temperature during inspection: 75 to 85 Degrees

Parties present at inspection: Seller

Inspection Fee: $575

THIS REPORT IS PAID AND PREPARED FOR THE EXCLUSIVE USE BY Elizabeth Jeffett. THIS

COPYRIGHTED REPORT IS NOT VALID WITHOUT THE SIGNED INSPECTION AGREEMENT.

THIS REPORT IS NOT TRANSFERABLE FROM CLIENT NAMED ABOVE.

SCOPE OF INSPECTION

These standards of practice define the minimum levels of inspection required for substantially completed residential

improvements to real property up to four dwelling units. A real estate inspection is a non-technically exhaustive, limited visual

survey and basic performance evaluation of the systems and components of a building using normal controls and does not

require the use of specialized equipment or procedures. The purpose of the inspection is to provide the client with information

regarding the general condition of the residence at the time of inspection. The inspector may provide a higher level of

inspection performance than required by these standards of practice and may inspect components and systems in addition to

those described by the standards of practice.

The inspector is not required to:

(A) inspect:

GENERAL LIMITATIONS

(i) items other than those listed within these standards of practice;

(ii) elevators;

(iii) detached buildings, decks, docks, fences, or waterfront structures or equipment;

(iv) anything buried, hidden, latent, or concealed;

(v) sub-surface drainage systems;

(vi) automated or programmable control systems, automatic shut-off, photoelectric sensors, timers, clocks, metering

devices, signal lights, lightning arrestor system, remote controls, security or data distribution systems, solar panels,

refrigerators (built-in or free standing), wine coolers, ice makers or smart home automation components; or

(vii) concrete flatwork such as; driveways, sidewalks, walkways, paving stones or patios;

(B) report: (i) past repairs that appear to be effective and workmanlike except as specifically required by these standards;

(ii) cosmetic or aesthetic conditions; or

(iii) wear and tear from ordinary use;

(C) determine: (i) insurability, warrantability, suitability, adequacy, compatibility, capacity, reliability, marketability, operating costs,

recalls, counterfeit products, product lawsuits, life expectancy, age, energy efficiency, vapor barriers, thermostatic

performance, compliance with any code, listing, testing or protocol authority, utility sources, or manufacturer or

regulatory requirements except as specifically required by these standards;

(ii) the presence or absence of pests, termites, or other wood-destroying insects or organisms;

(iii) the presence, absence, or risk of asbestos, lead-based paint, MOLD, mildew, corrosive or contaminated drywall

“Chinese Drywall” or any other environmental hazard, environmental pathogen, carcinogen, toxin, mycotoxin,

pollutant, fungal presence or activity, or poison;

(iv) types of wood or preservative treatment and fastener compatibility; or

(v) the cause or source of a conditions;


Page 4 of 19

REI 7-5 (05/4/2015)

(D) anticipate future events or conditions, including but not limited to:

(i) decay, deterioration, or damage that may occur after the inspection;

(ii) deficiencies from abuse, misuse or lack of use;

(iii) changes in performance of any component or system due to changes in use or occupancy;

(iv) the consequences of the inspection or its effects on current or future buyers and sellers;

(v) common household accidents, personal injury, or death;

(vi) the presence of water penetrations; or

(vii) future performance of any item;

(E) operate shut-off, safety, stop, pressure or pressure-regulating valves or items requiring the use of codes, keys,

combinations, or similar devices;

(F) designate conditions as safe;

(G) recommend or provide engineering, architectural, appraisal, mitigation, physical surveying, realty, or other specialist

services;

(H) review historical records, installation instructions, repair plans, cost estimates, disclosure documents, or other reports;

(I) verify sizing, efficiency, or adequacy of the ground surface drainage system;

(J) verify sizing, efficiency, or adequacy of the gutter and downspout system;

(K) operate recirculation or sump pumps;

(L) remedy conditions preventing inspection of any item;

(M) apply open flame or light a pilot to operate any appliance;

(N) turn on decommissioned equipment, systems or utility services; or

(O) provide repair cost estimates, recommendations, or re-inspection services.

THE CLIENT, BY ACCEPTING THIS PROPERTY INSPECTION REPORT OR RELYING UPON IT IN ANY

WAY, EXPRESSLY AGREES TO THE SCOPE OF INSPECTION, GENERAL LIMITATIONS AND INSPECTION

AGREEMENT INCLUDED IN THIS INSPECTION REPORT.

This inspection report is made for the sole purpose of assisting the purchaser to determine his and/or her own opinion of

feasibility of purchasing the inspected property and does not warrant or guarantee all defects to be found. If you have any

questions or are unclear regarding our findings, please call our office prior to the expiration of any time limitations such as

option periods.

This report contains technical information. If you were not present during this inspection, please call the office to arrange for a

consultation with your inspector. If you choose not to consult with the inspector, this inspection company cannot be held liable

for your understanding or misunderstanding of the reports content.

This report is not intended to be used for determining insurability or warrantability of the structure and may not conform to the

Texas Department of Insurance guidelines for property insurability. This report is not to be used by or for any property and/or

home warranty company.

The digital pictures in this report are a sample of the deficiencies / damages in place and should not be considered to show all

of the deficiencies / damages found. There will be some damage and/or deficiencies not represented with digital imaging.

Report Identification: 3525 Turtle Creek #17B, Dallas, TX

I=Inspected NI=Not Inspected NP=Not Present D=Deficient

This confidential report is prepared exclusively for : Elizabeth Jeffett

© DFW Home Inspections LLC 214-577-5155

Page 5 of 19

REI 7-5 (05/4/2015)

I NI NP D

I. STRUCTURAL SYSTEMS

A. Foundations

Type of Foundation(s): Highrise / Tower

Crawl Space Viewed From: N/A

Foundation Performance Opinion:

Foundation Is Performing Adequately. In my opinion, the foundation appears to be providing adequate

support for the structure at the time of this inspection. I did not observe any apparent evidence that would

indicate the presence of adverse performance or significant deficiencies in the foundation. The interior and

exterior stress indicators showed little affects of adverse performance and I perceived the foundation to

contain no significant unlevelness after walking the 1st level floors.

Comments:

NOTE: The Condo Association may be responsible for maintaining the foundation. The Inspector

recommends verification by the Buyer of the Condo Owner and the Condo Association's respective

responsibilities.

Notice: This inspection is one of first impression and the inspector was not provided with any historical

information pertaining to the structural integrity of the inspected real property. This is a limited cursory and

visual survey of the accessible general conditions and circumstances present at the time of this inspection.

Opinions are based on general observations made without the use of specialized tools or procedures.

Therefore, the opinions expressed are one of apparent conditions and not of absolute fact and are only good

for the date and time of this inspection.

The inspection of the foundation may show it to be providing adequate support for the structure or having

movement typical to this region, at the time of the inspection. This does not guarantee the future life or

failure of the foundation. The Inspector is not a structural engineer. This inspection is not an

engineering report or evaluation and should not be considered one, either expressed or implied. If any

cause of concern is noted on this report, or if you want further evaluation, you should consider an

evaluation by an engineer of your choice.

B. Grading and Drainage

Comments:

NOTE: The Condo Association may be responsible for maintaining the grading and drainage. The

Inspector recommends verification by the Buyer of the Condo Owner and the Condo Association's

respective responsibilities.

C. Roof Covering Materials

Type(s) of Roof Covering: High Rise / Multi Story Condominium

Viewed From: N/A

Comments: NOTE: The Condo Association may be responsible for maintaining the roof covering. The Inspector


responsibilities.

Notice: Life expectancy of the roofing material is not covered by this property inspection report. If any

concerns exist about the roof covering life expectancy or potential for future problems, a roofing

rochellem

Text Box





Page 6 of 19

REI 7-5 (05/4/2015)

I NI NP D

specialist should be consulted. The Inspector cannot offer an opinion or warranty as to whether the roof

has leaked in the past, leaks now, or may be subject to future leaks, either expressed or implied.

The inspection of this roof may show it to be functioning as intended or in need of minor repairs. This

inspection does not determine the insurability of the roof. You are strongly encouraged to have your

Insurance Company physically inspect the roof, prior to the expiration of any time limitations such as

option or warranty periods, to fully evaluate the insurability of the roof.

D. Roof Structures and Attics

Viewed From: No attic due to type of construction

Approximate Average Depth of Insulation: Unable to determine

(Note: Recommended depth of attic floor insulation is approx. 10+ inches to achieve a R30 rating.)

Comments:

E. Walls (Interior and Exterior)

Description of Exterior Cladding: High Rise Condo Building

Comments:

NOTE: The Condo Association may be responsible for maintaining the exterior walls. The

Inspector recommends verification by the Buyer of the Condo Owner and the Condo Association's

respective responsibilities.

F. Ceilings and Floors

Comments:

No visible/apparent defects observed at the time of inspection.

G. Doors (Interior and Exterior)

Comments:

Double cylinder locks were observed on one or more of the exterior exit (egress) doors. All exterior

egress doors should be readily operable from the side from which egress is to be made without the use

of a key or special knowledge or effort.

Missing weather-stripping observed at the front entry and kitchen entry doors.

The dining room, East Bedroom and West bedroom doors are not latching properly.

H. Windows

Comments:


Notice: Some windows may not be operated due to the presence of window treatments, personal effects,

large, heavy or fragile storage and/or furniture.

NOTE: The Condo Association may be responsible for maintaining the windows. The Inspector


responsibilities.

rochellem

Text Box





Page 7 of 19

REI 7-5 (05/4/2015)

I NI NP D

I. Stairways (Interior and Exterior)

Comments:

J. Fireplaces and Chimneys

Comments:

K. Porches, Balconies, Decks, and Carports

Comments:

NOTE: The Condo Association may be responsible for maintaining the exterior porches and/or

balconies. The Inspector recommends verification by the Buyer of the Condo Owner and the Condo

Association's respective responsibilities.

L. Other

Comments:

rochellem

Text Box





Page 8 of 19

REI 7-5 (05/4/2015)

I NI NP D

II. ELECTRICAL SYSTEMS

A. Service Entrance and Panels

Box Rating and/or Main Disconnect Rating: 200 amps

Box Location: Interior Closet

Comments:

The electrical cabinet cover plate (dead front) should be installed with blunt tip screws and not sharp

wood type screws for reasons of safety.

One or more of the cabinet cover plate screws are missing and need to be replaced.

Over spray/paint observed inside the panel box.

Openings observed in the panel box.

B. Branch Circuits, Connected Devices, and Fixtures

Type of Wiring: Copper

Comments:

Smoke Alarms Note: It is recommended to replace the batteries in all of the smoke detectors once a year for reasons of

safety.

Note: One or more Smoke/Fire detection devices (if present) were not tested. The inspector was unable to

determine whether these devices were connected to the Fire Department and/or Alarm monitoring

company.

There are not enough smoke alarms located in the home. Under current building standards, there

should be a smoke alarm located in each sleeping room, outside each separate sleeping area in the

immediate vicinity of the sleeping rooms (West Master Bedroom hallway), and on each additional

story of the dwelling.

Distribution Wiring and Components Note: AFCI breakers are not tested in occupied premises where damage may occur in the inspector's

reasonable judgment.

Note: Some receptacles in occupied premises may be inaccessible and could not be reached for inspection

due to personal effects, heavy storage, furniture or conditions outside the control of the inspector.

The receptacles in the wet/damp areas do not appear to have ground fault circuit interrupter (GFCI)

protection (except East Master Bathroom). Under current electrical standards all of the exterior

receptacles, all kitchen counter top receptacles, all bathroom receptacles, wet bar countertop

receptacles, laundry room sink countertop receptacles, garage non-appliance dedicated receptacles and

pool lighting should have GFCI protection.

One or more of the receptacles were observed to have an open neutral connection in the kitchen,

rochellem

Text Box





Page 9 of 19

REI 7-5 (05/4/2015)

I NI NP D

breakfast area (Yellow Dot).

The dimmer switch does not appear to be functioning properly in the butler's pantry.

One or more of the ceiling light fixtures appear to be inoperative in the breakfast area, hall closet,

dining room, master bathroom. This may be due to a bad bulb or some other unknown condition.

The 3-way switch is not functioning properly in the dining room.

The dimmer switch does not appear to be functioning properly in the wet bar hallway.

One or more of the receptacles were observed to be loose at the wall mount in the master bedroom.

One or more of the receptacles were observed to have an open ground connection in the master

bedroom (Green Dot).

One or more of the receptacles is missing its cover plate in the master bathroom.

rochellem

Text Box





Page 10 of 19

REI 7-5 (05/4/2015)

I NI NP D

III. HEATING, VENTILATION AND AIR CONDITIONING SYSTEMS

A. Heating Equipment

Type of System: Central Plant-Boiler/Chiller Energy

Source: Central Plant-Boiler/Chiller Approximate

System Age: Unknown-Central Boiler Comments:


B. Cooling Equipment

Type of System: Central Plant - Chiller/Boiler

Approximate System Size: Unknown-Provided by Central Plant

Approximate System Age: Unknown-Central Plant

Today's Temperature Differential (Delta-T): 0 Degrees

Comments:

Temperatures measured at the following locations: kitchen 70, dining room 77, East bedroom 62,

living room 60, West bedroom 59.

rochellem

Text Box





Page 11 of 19

REI 7-5 (05/4/2015)

Notice: Temperature differential readings are an accepted industry proper operation of the cooling system. Our company policy nor

approximately between 15 to 20 degrees °F total difference (Delta-T)

supply air within close proximity of the related coils of the system bei

not limited to; excessive humidity, high or low outdoor temperature

abnormal operation even through the equipment is functioning basical

indicate normal operation in spite of an equipment malfunction.

anticipate future events, conditions or changes in performance of

standard of practice for testing the al acceptable range is considered

measured between the return air and

ng evaluated. Conditions such as but

s or restricted airflow may indicate

ly as designed and occasionally may

The inspector will not be able to

any component or system due to changes in use or occupancy. The inspector makes no guarantee or warranty, express or implied, as to future performance of any item, system or component.

I NI NP D

m

C. Duct Systems, Chases, and Vents

Filter Size: Filter at Central Plant

Location: At Central Plant

Comments: Poor air flow observed at the kitchen and dining room air registers.

One or more thermostats are poorly located behind a door. This type of installation will not allow the

thermostat to properly read the conditioned air of the common living space when the door is open.

rochellem

Text Box





Page 12 of 19

REI 7-5 (05/4/2015)

I NI NP D

IV. PLUMBING SYSTEMS

A. Plumbing Supply, Distribution Systems and Fixtures

Location of water meter: Multi Unit Property - Water not individually metered

Location of main water supply valve: Unable to Locate a Main Supply Valve

Static water pressure reading: Unable to determine-multi unit property

Comments:

The kitchen sink sprayer does not appear to be working properly.

The kitchen faucets hot/cold water orientation is reversed.

East Master Bathroom

The commode is loose at the floor mount.

The bathtub shower head diverter could not be located at the time of inspection.

The bathtub stopper is missing.

West Master Bathroom

The bathtub faucets hot/cold water orientation is reversed.

Shower steamer not inspected per Client.

The sink faucet is not functioning properly at this time.

Note: What appears to be a speaker is loose at the shower ceiling.

Notice: The Inspector has attempted to discover and report conditions requiring further evaluation or

repair. However; determining the condition of any component that is not visible and/or accessible, such as

plumbing components that are buried, beneath the foundation, located within construction voids or

otherwise concealed, and reporting any deficiency that does not appear or become evident during our

limited cursory and visual survey is outside the scope of this inspection. The inspector will not be able to

anticipate future events, conditions or changes in performance of any component or system due to

changes in use or occupancy. The inspector makes no guarantee or warranty, express or implied, as to

future performance of any item, system or component.

B. Drains, Wastes, and Vents

Comments:


Notice: Reporting the condition of drains, wastes and vent piping that is not completely visible and/or

rochellem

Text Box





Page 13 of 19

REI 7-5 (05/4/2015)

I NI NP D

accessible or; reporting any defect or deficiency that requires extended use of the system to develo does not become evident during our limited cursory and visual survey is outside the scope of

inspection. This is a limited cursory and visual survey of the accessible general conditions

circumstances present at the time of this inspection. Opinions are based on general observations m

without the use of specialized tools or procedures. Therefore, the opinions expressed are one of appa

conditions and not of absolute fact and are only good for the date and time of this inspection.

inspector will not be able to anticipate future events, conditions or changes in performance of

p or the

and

ade

rent

The

any

component or system due to changes in use or occupancy. The inspector makes no guarantee or

warranty, express or implied, as to future performance of any item, system or component.

C. Water Heating Equipment

Energy Source: Unable to locate a water heater - Provided by Central Boiler

Location: Central Plant/Boiler

Approximate Capacity: Provided by Central Boiler

Approximate Age: Unknown-Central Boiler

Comments:


D. Hydro-Massage Therapy Equipment

Comments:

Location of GFCI: Unable to locate a GFCI for equpiment.

The hydro-massage therapy equipment appears to be inoperative at the time of this inspection. This

condition should be further evaluated and corrected as necessary.

I was unable to locate a ground fault circuit interrupter (GFCI) receptacle or breaker for the hydro-

massage therapy equipment. The homeowner should be consulted on the location of this GFCI device.

If there is no GFCI device installed on the hydro-massage therapy equipment circuit, a GFCI

receptacle or breaker should be installed for reasons of safety.

The access to the hydro-massage therapy equipment motor is not readily accessible and inspection of

the equipment lines and motor could not be performed. This does not meet current installation

standards.

rochellem

Text Box





Page 14 of 19

REI 7-5 (05/4/2015)

I NI NP D

E. Gas Distribution System

Comments:

Notice: The location and identification of Corrugated Stainless Steel Tubing (CSST) gas lines, if any,

by this inspector is subject to and/or limited to the scope and limitations of the Texas Real Estate

Commission (TREC) Standard of Practice.

Scope: The Inspector shall inspect and report deficiencies in the condition of all accessible and visible gas

pipes and test the gas lines using a local and/or industry accepted procedure. The Inspector will use a

combustible gas leak detector on all the accessible gas lines, joints, unions and connectors and report as in

need of repair, any deficiencies found at the time and date of the inspection.

Specific Limitations for gas lines: The inspector is not required to inspect sacrificial anode bonding or for

its existence. The Inspector does not and will not perform a pressure test on the gas lines. The Inspector

cannot detect gas leaks below the finished grade (under ground) or between the walls or behind fireplace

hearths. Propane tanks will not be inspected. If any further concerns exist about possible gas line failure

and/or deficiencies, we recommend the buyer have the gas system further evaluated by the local controlling

gas supplier and/or a qualified licensed master plumber.

F. Other

Comments:

rochellem

Text Box





Page 15 of 19

REI 7-5 (05/4/2015)

I NI NP D

V. APPLIANCES

A. Dishwashers

Comments:

In the inspector's opinion this component appears to be performing adequately at the time of this

inspection.

B. Food Waste Disposers

Comments:


inspection.

C. Range Hood and Exhaust Systems

Comments:

The range exhaust vent fan is inoperative.

D. Ranges, Cooktops, and Ovens

Comments:


inspection.

E. Microwave Ovens

Comments:

No built-in microwave present.

F. Mechanical Exhaust Vents and Bathroom Heaters

Comments:


inspection.

G. Garage Door Operators

Comments:

H. Dryer Exhaust Systems

Comments:

Notice: Dryer vents are not inspected from the interior connection to the exterior of the building.

A dryer vent connection observed in the laundry area

I. Other

Comments:

rochellem

Text Box





Page 16 of 19

REI 7-5 (05/4/2015)

I NI NP D

rochellem

Text Box



REI 7-5 (05/4/2015)

I NI NP D

VI. OPTIONAL SYSTEMS

A. Landscape Irrigation (Sprinkler) Systems

Comments:

Notice: When the system is operational, all of the sprinkler system associated components are inspected

and operated in the manual settings only..



Page 17 of 19

rochellem

Text Box




Page 18 of 19

REI 7-5 (05/4/2015)

INSPECTION AGREEMENT

PLEASE READ THIS AGREEMENT CAREFULLY BEFORE SIGNING

This Inspection Agreement (herein after known as the Agreement) is entered into on this day, 10/02/2017, between Elizabeth Jeffett

(herein known as the Client) and DFW Home Inspections LLC (herein known as the Inspector) for the purpose of performing a

general property condition inspection concerning 3525 Turtle Creek #17B (herein known as the property).

I. SCOPE OF SERVICES A. A real estate inspection is a non-technically exhaustive, limited visual survey and basic performance evaluation of the systems

and components of a building using normal controls and does not require the use of specialized equipment or procedures. The

purpose of the inspection is to provide the Client with information regarding the general condition of the Property at the time of

inspection.

B. In exchange for the inspection fee paid by the Client, the Inspector agrees to provide the Client with an Inspection Report setting

out the Inspector's professional opinions concerning the condition of the Property further described in the report. The inspection

will be performed in accordance with the Standards of Practice promulgated by the Texas Real Estate Commission. Inspector will

attempt to identify major defects and problems with the Property. However, Client acknowledges that the Inspection Report may

not identify all defects or problems.

C. The inspection is limited to those items which are easily accessible, seen, viewed or capable of being approached, entered and/or

operated by the Inspector at the time of the inspection as set out in the Inspection Report. The Inspector will not climb over

obstacles, move furnishings or large, heavy, or fragile objects, remove walls, floors, wall coverings, floor coverings and other

obstructions in order to inspect concealed items. The inspector will not turn on decommissioned equipment, systems, utility

services. Systems, components and conditions which are not specifically addressed in the Inspection Report are excluded.

D. The Inspection Report may indicate one of the following opinions of the Inspector regarding a particular item:

1. The item is performing its intended function, achieving an operation, function or configuration relative to accepted industry

standard practices with consideration of age and normal wear and tear from ordinary use at the time of the inspection;

2. The item is in need of replacement, maintenance or repair; or

3. Further evaluation by an expert is recommended.

II. INSPECTION REPORT A. The Inspection Report provided by the Inspector will contain the Inspector's professional, good-faith opinions concerning the

need for repair or replacement of certain observable items. All statements in the report are the Inspector's opinions and should not

be construed as statements of fact or factual representations concerning the Property. By signing this Agreement, the Client

understands that the services provided by the Inspector fall within the Professional Services Exemption of the Texas

Deceptive Trade Practices Act ("DTPA") and agrees that no cause of action exists under the DTPA related to the services

provided. B. Unless specifically stated, the report WILL NOT INCLUDE and should not be read to indicate OPINIONS AS TO;

1. the presence, absence, or risk of environmental conditions such as asbestos, lead-based paint, MOLD, mildew, corrosive or

contaminated drywall "Chinese Drywall" or any other environmental hazard, environmental pathogen, carcinogen, toxin,

mycotoxin, pollutant, fungal presence or activity, poison, presence of toxic or hazardous waste or substances;

2. presence or absence of pests, termites, or other wood-destroying insects or organisms;

3. COMPLIANCE WITH compliance with any ordinances, statutes or restrictions, CODE, listing, testing or protocol

authority, utility sources, property association guidelines or requirements, manufacturer or regulatory requirements; 4. insurability, efficiency warrantability, suitability, adequacy, compatibility, capacity, durability, quality reliability,

marketability, operating costs, recalls, counterfeit products, product lawsuits, age, energy efficiency; or

5. anticipate future life or future events or changes in performance of any item inspected.

C. The Inspection Report is not a substitute for disclosures by sellers and real estate agents. Said disclosure statements should be

carefully investigated for any material facts that may influence or effect the desirability and/or market value of the Property.

D. As noted above, the Inspection Report may state that further evaluation of certain items is needed by an expert in the field of the

item inspected. By signing this Agreement, Client acknowledges that qualified experts may be needed to further evaluate such

items as structural systems, foundations, grading, drainage, roofing, plumbing, electrical systems, HVAC, appliances, sprinkler

systems pool system and components, fire/smoke detection systems, septic systems and other observable items as noted in the

report. Any such follow-up should take place prior to the expiration of any time limitations such as option or warranty periods.

rochellem

Text Box




Page 19 of 19

REI 7-5 (05/4/2015)

III. DISCLAIMER OF WARRANTIES

The inspector makes no guarantee or warranty, express or implied, as to any of the following:

1. That all defects have been found or that the Inspector will pay for repair of undisclosed defects;

2. That any of the items inspected are designed or constructed in a good and workmanlike manner;

3. That any of the items inspected will continue to perform in the future as they are performing at time of the inspection; and

4. That any of the items inspected are merchantable or fit for any particular purpose.

IV. LIMITATION OF LIABILITY

BY SIGNING THIS AGREEMENT, CLIENT ACKNOWLEDGES THAT THE INSPECTION FEE PAID TO THE

INSPECTOR IS NOMINAL GIVEN THE RISK OF LIABILITY ASSOCIATED WITH PERFORMING HOME

INSPECTIONS IF LIABILITY COULD NOT BE LIMITED. CLIENT ACKNOWLEDGES THAT WITHOUT THE

ABILITY TO LIMIT LIABILITY, THE INSPECTOR WOULD BE FORCED TO CHARGE CLIENT MUCH MORE

THAN THE INSPECTION FEE FOR THE INSPECTOR'S SERVICES. CLIENT ACKNOWLEDGES BEING GIVEN

THE OPPORTUNITY TO HAVE THIS AGREEMENT REVIEWED BY COUNSEL OF HIS OR HER OWN

CHOOSING AND FURTHER ACKNOWLEDGES THE OPPORTUNITY OF HIRING A DIFFERENT INSPECTOR

TO PERFORM THE INSPECTION. BY SIGNING THIS AGREEMENT, CLIENT AGREES TO LIABILITY BEING

LIMITED TO THE AMOUNT OF THE INSPECTION FEE PAID BY THE CLIENT. $575

V. DISPUTE RESOLUTION In the event a dispute arises regarding an inspection that has been performed under this agreement, the Client agrees to notify the

Inspector within ten (10) days of the date the Client discovers the basis for the dispute so as to give the Inspector a reasonable

opportunity to reinspect the property. Client agrees to allow reinspection before any corrective action is taken. Client agrees not

to disturb or repair or have repaired anything which might constitute evidence relating to a complaint against the Inspector. Client

further agrees that the Inspector can either conduct the reinspection himself or can employ others (at Inspector's expense) to

reinspect the property, or both. In the event a dispute cannot be resolved by the Client and the Inspector, the parties agree that any

dispute or controversy shall be resolved by mandatory and binding arbitration administered by the American Arbitration

Association ("AAA") pursuant to Chapter 171 of the Texas Civil Practice & Remedies Code and in accordance with this

arbitration agreement and the commercial arbitration rules of the AAA.

VI. ATTORNEY’S FEES The Inspector and the Client agree that in the event any dispute or controversy arises as a result of this Agreement, and the

services provided hereunder, the prevailing party in that dispute shall be entitled to recover all of the prevailing party's reasonable

and necessary attorneys' fees and costs incurred by that party.

VII. EXCLUSIVITY The Inspection Report is to be prepared exclusively for the Client and is not transferable to anyone in any form. Client gives

permission for the Inspector to discuss report findings with real estate agents, specialists, or repair persons for the sake of

clarification. A copy of the Inspection Report may be released to the buyers Real Estate Agent.

VIII. SECURITY SYSTEM INSPECTION NOTICE The Inspector contracts with ADT Security Services Inc. to perform all of our security system inspections. As part of this

inspection, you should expect one of ADT sales representatives to contact you to offer you the opportunity to receive a FREE

Security System if you sign up for their services. If you do not wish to have any follow-up calls from ADT, please contact our

office by phone or email and we will have your name removed from the ADT callback list.

rochellem

Text Box


TAX APPRAISAL

10/13/2017 Dallas County Web Site

http://www.dallasact.com/act_webdev/dallas/showdetail2.jsp?can=00000139201820000&ownerno=0 1/2

Owner Search Address Search Account Search Fiduciary Search

Property Tax Balance

All tax information refers to the 2017 Tax Year, unless otherwise noted, i.e. "Prior Year Amount Due". Amounts dueinclude penalty, interest, and collection fees if applicable.

Account Number: 00000139201820000

Address:

UNIT 17-B 3525 TURTLE CREEK BLVD APT 17B

DALLAS, TX 75219-5518

Property Site Address: 3525 TURTLE CREEK BLVD 17-B, DA

Legal Description: 3525 CONDOMINIUMS

BLK 2/1043 ACS 2.8244 UNIT 17B & 0.0178771% CE

INT201500320361 DD12012015 CO-DC 1043 002 00000 1DA1043 002

Current Tax Levy: $23,458.47

Current Amount Due: $23,458.47

Prior Year Amount Due: $0.00

Total Amount Due: $23,458.47

Request an Address Correction

Click Here to see your estimated amount due for a future date. You can see this information by year and by both year and jurisdiction.

http://www.dallascounty.org/index.html

http://www.dallasact.com/act_webdev/dallas/index.jsp

http://www.dallasact.com/act_webdev/dallas/searchbyproperty.jsp

http://www.dallasact.com/act_webdev/dallas/searchbyaccount.jsp

http://www.dallasact.com/act_webdev/dallas/searchbyfiduciary.jsp

http://www.dallasact.com/act_webdev/dallas/requests/address_correction.jsp?can=00000139201820000&ownerno=0

http://www.dallasact.com/act_webdev/dallas/reports/future_taxselect.jsp?can=00000139201820000&ownerno=0&taxYear=2017

10/13/2017 Dallas County Web Site

http://www.dallasact.com/act_webdev/dallas/showdetail2.jsp?can=00000139201820000&ownerno=0 2/2

Make your check or money order payable to: JOHN R. AMES, CTA, TAX ASSESSOR/COLLECTOR

Dallas County Tax Office P O BOX 139066

DALLAS, TEXAS 75313-9066

Go to Your Portfolio Tax Office Home Page

Terms of Use Privacy Policy

Disclaimer: The Dallas County Tax Office provides this World Wide Web (WWW) site information and services "as is" without warranty of any kind, either expressed or implied. The Dallas County Tax Office does not warrant the accuracy,authority, completeness, usefulness, timeliness, or fitness for a particular purpose of its information or services. The Dallas County Tax Office, its officials and employees shall not be liable for any loss or injury caused in whole or part by itsnegligence, contingencies beyond its control, loss of data, or errors or omissions in the WWW site information or services.

DALLAS COUNTY TAX OFFICE 1201 Elm Street, Suite 2600

Dallas, Texas 75270 214-653-7811

©Appraisal & Collection Technologies. All rights reserved.

http://www.dallasact.com/act_webdev/dallas/portfolio/Login.jsp

http://www.dallascounty.org/applications/english/proptax_app/tax_intro.html

http://www.dallasact.com/act_webdev/dallas/terms.jsp

http://www.dallasact.com/act_webdev/dallas/privacypolicy.jsp


CONDOMINIUM RESALE CERTIFICATE

rochellem

Typewritten Text

Please call 214-409-1384 for a copy of this certificate


OWNERS HANDBOOK

We, your Board of Directors, applaud your choice of making your home in a

high-rise building. With today's busy lifestyles, we agree that the

advantages and ambiance offered far outweigh those offered by a private

dwelling.

However, in order that the “Condominium Community Concept" of living

be totally successful, it is essential to have each individual owner's

wholehearted acceptance of and willingness to abide by rules and guidelines

created for the benefit of the majority of owners.

Community living demands a respect for individual privacy as well as a

willing and considerate spirit in sharing a mutual front door, lobby and

elevators.

We, your Board, are always open to your suggestions, and ask you to

understand that we must ever respect the majority viewpoint for the final

good of our building.

Respectfully,

The 3525 Condominiums

Board of Directors

3525 CONDOMINIUMS

OWNERS HANDBOOK

INDEX

ASSESSMENTS Section 1 BUILDING EMPLOYEES Section 2 BUILDING FACILITIES AND EQUIPMENT Section 3 BUILDING MAINTENANCE Section 4 CHILDREN Section 5 COMMON AREAS Section 6 COMPLAINTS, KEYS AND MISCELLANEOUS Section 7 CONSTRUCTION PLANS Section 8 CONTRACTORS’ WORK PROCEDURES Section 9 DELIVERIES Section 10 ENTERTAINING Section 11 FIRE PROCEDURE & EQUIPMENT Section 12 GUEST ROOM Section 13 HOLIDAYS Section 14 INSURANCE Section 15 LEASES Section 16 MOVING Section 17 OWNERS’ EMPLOYEES Section 18 OUT OF TOWN PROCEDURE (Owners) Section 19 PARKING Section 20 PETS Section 21 SECURITY Section 22 STORAGE Section 23 SWIMMING POOL Section 24 TRASH Section 25 WINDOWS AND BALCONIES Section 26

NOTE: These rules may be added to, amended, or repealed at any time by The Board of Directors.

If you wish clarification of any part of this booklet, please discuss it with the Building Manager.

1/1/96

ASSESSMENTS AND OTHER CHARGES Section 1

(Updated 8/1/97)

1.01 Your monthly common area maintenance fee is due in the Management Office on or before the

first (1st) of each month.

1.02 Interest of ten (10%) percent will be charged on any unpaid balances to the Association after 30

days. This will be a cumulative charge as the account continues to remain unpaid.

1.03 The Management Office will not accept post dated checks from Owners. All checks received will

be deposited upon receipt.

1.04 Other charges i.e. freight elevator, move-in/move-out fees, floor covering, storage locker, etc. will

be the responsibility of the Owner of the condominium unit, not the tenant. The Management

Office cannot and will not pursue your tenant for such charges.

BUILDING EMPLOYEES Section 2

(Updated 8/1/97)

2.01 No condominium Owner may send any 3525 employee out of the building on any private

business.

2.02 All regular and occasional help employed by 3525 are required to park their automobiles on the

top level of the parking garage.

2.03 A condominium Owner’s use of 3525 housekeeping staff must be scheduled by the Management

Office.

2.04 Owners who use 3525 housekeeping staff on a regular basis will be charged for the staff time

when they are out of town, unless the staff can be reassigned to another unit Owner during their

absence. Unit Owners may prefer to release their scheduled housekeeping staff’s time during an

absence and take their chance of having the housekeeping service available upon their return.

2.05 No tools or equipment will be permitted to be removed from the premises of 3525 by any of the

building employees for personal use.

2.06 Staff Holidays:

New Year's Day

Memorial Day

July 4th

Labor Day

Thanksgiving Day

1/2 day Christmas Eve

Christmas Day

However, one person from the Maintenance Department will perform the daily maintenance

routines and will be on call for the twenty-four hour period.

2.07 The charge for services by building employees is made in order to reimburse 3525 for the full

remuneration and fringe benefits, which include the cost of social security, workmen's

compensation, unemployment insurance, vacation and sick pay. It is necessary to adjust the

charge made to Owners from time to time to reflect increased costs. The current rate schedule is

available in the Management Office. The billing for these services is based upon a minimum

charge and a 15-minute increment.

When the time spent on the job is determined, a full 15 minutes is billed for all time up to 15

minutes, a half hour is billed for all time between 15 minutes and a half hour, etc.

2.08 If you need housekeeping or maintenance service, please contact the Management Office at 526-

3525.

BUILDING FACILITIES AND EQUIPMENT Section 3

(Updated 8/1/97)

3.01 AIR COMPRESSOR: An air hose hooked to a compressor is available, located on the east end of

the first floor of the garage.

3.02 ALTERATIONS & REPAIRS: Owners are reminded that alteration and repair of the exterior of the

buildings, balconies and common elements are the responsibility of the Board. No Owner may do

any painting or decorating of the exterior of the buildings or make any alterations or construct any

improvements to the exterior of the buildings or any of the common elements. Balconies are a

“limited” common area; therefore you must have written permission from the Board of Directors

before changing any wall, ceiling or floor area. No satellite dishes are permitted in this area.

3.03 CABLE TV: 3525 is wired for cable TV. Each unit Owner can subscribe to cable at their cost.

This connection should be made by the TV technician used by the building; otherwise, your

connection might effect another Owners’ reception. You will pay this company direct for this

service.

3.04 COMMUNICATION WITH THE FRONT DOOR: Some condominiums have a “house phone”

connected directly with the front desk which may be used to call the valet for delivery of your car,

or staff can use to announce your guests. If you do not have a house phone you may call the

front direct by dialing 526-7988. Please let management and the front and back desks know your

new phone number as soon as possible.

3.05 COPY MACHINE: 3525 has a copying machine for the convenience of unit Owners. This is

available during normal business hours of the Management Office. Copies are free (under 10).

We cannot accommodate more than this.

3.06 ENTERTAINING: The Turtle Room is available for your use. For details see ENTERTAINING,

SECTION 11.

3.07 EXERCISE ROOM: A unisex Exercise Room and Sauna Bath is available on the Mezzanine

Level. Instructions for their use are posted in the respective rooms.

3.08 DECORATING: No unit entrances, hallways, balconies, storage areas, or any other portion of the

common elements shall be decorated by any Owner in any manner without prior written consent

of the Board or Manager.

3.09 GUEST ROOM: There is one Guest Room. For details see GUEST ROOM,

SECTION 13.

3.10 ICE MACHINE: Extra ice is provided for the Owners in an ice machine in the Rear Hall

Mezzanine.

3.11 LAUNDRY ROOM: A Laundry Room is provided on the Mezzanine, Rear Hall for the use of unit

Owners. The washers and dryers are coin operated and instructions for their use are posted.

These are vendor owned and operated, 3525 is not responsible, call the vendor with any

problems. Laundry is not permitted on passenger elevators.

BUILDING FACILITIES AND EQUIPMENT

Section 3 (cont'd) (Updated 8/1/97)

3.12 MAIL ROOM: The Mail Room, located in the Lobby Area, has side boxes next to the U.S. Mail

Box. These side boxes are for 3525 correspondence. You may also use them, but we request

they not be used for outside advertising or events not in the common interest of 3525 unit Owners.

3.13 PARKING: Each unit is allotted two reserved parking spaces. For details see PARKING,

SECTION 20.

3.14 RESTRICTED AREA: Owners, their families, guests, servants, employees, agents, visitors or

licensees shall not at any time or for any reason whatsoever enter upon or attempt to enter upon

the roof of the building.

3.15 SWIMMING POOL: There is a swimming pool for Owners and their guests. For details, see

SWIMMING POOL, SECTION 24.

3.16 TRASH CHUTE: A trash chute is located on each floor. This is small and connects to the

compactor in the basement. Please do not put coat hangers, cardboard boxes or anything that

might catch sideways and block it. This trash chute is for small trash bags only!

3.17 USE OF TOOLS: All building equipment, including tools, saws, drills, sweepers, etc., shall be

used only by authorized 3525 personnel.

3.18 WINDOWS AND DOORS: Owners must close all exterior windows or sliding doors as our central

heating and cooling system is designed to provide maximum efficiency only in closed units.

Introduction of outside air can cause your wall vents to sweat and damage your wall with excess

moisture. A closed window also avoids possible damage from storms or the elements.

3.19 VENDING MACHINES: A coin operated cold drink and snack machine is located in the Rear Hall

(first floor). A bill changer is also located there. 3525 is not responsible for these machines, lost

coins, etc, call the vendor!

BUILDING MAINTENANCE Section 4

4.01 When a unit Owner has any maintenance or construction work which needs to be done by the

building employees, it must be scheduled through the Management Office, there is a fee charged.

4.02 The 3525 Condominiums are responsible only for maintaining the original structure and

equipment, and not for any alterations or additions in the individual condominium units.

4.03 Maintenance responsibilities of The 3525 Condominiums:

Exterior of Building

Lobby area and hallways

Re-caulking of exterior windows - but not replacement

All of these responsibilities are subject to Paragraph 4.02 above.

4.04 Maintenance responsibilities of the Owners of 3525:

Air conditioning and heating mixing boxes within units

Air conditioning and heating filters (building will provide two free changes annually)

Dishwashers

Garbage disposers

Lighting fixtures and bulbs

Plumbing fixtures (including faucet leaks, washers, running commodes, etc.)

Ranges

Refrigerators

Showers - replacing pans or tile

Television sets

Thermostats and controls

Unit interior: cabinets, decorating, walls, interior doors, floors, ceiling, windows, etc.

Vent-a-hoods

4.05 Do not sweep or throw or permit anything to be swept or thrown from the doors, windows, or

balconies.

4.06 To establish responsibility for payment for repairs of damages in or to individual condominiums

caused by water, wind, or any other causes, the Board of Directors has established this policy:

3525 will repair the damage only when it is the result of its negligence in the maintenance of the

building or a fault in the structure of the building.

4.07 Any damage resulting from misuse of any water closet or other apparatus shall be paid for by

Owner in whose unit such damage shall have been caused.

4.08 Water shall not be left running for an unreasonable or unnecessary length of time.

4.09 No Owner shall interfere in any manner with any portion of the plumbing, heating, air conditioning

or lighting apparatus which is part of the common elements and not part of the Owners’

condominium.


(cont'd)

4.10 No exterior shades, awnings, window guards, ventilators, fans or air conditioning devices shall be

installed or used in or about the building’s common elements, or balconies except such as shall

have been approved by the Board or Manager in writing. If the Owner shall fail to keep any such

approved device in good order, repair and appearance, the Board or the Manager may remove

such device, charging the cost of removal to the Owner; and the device shall not be replaced until

it has been put in proper condition, and only with the further written consent of the Board or

Manager.

Reflective window tint film may be installed with Board approval. The required color is grey tint.

CHILDREN Section 5

5.01 If a guest or otherwise occupant, of a condominium unit disturbs another Owner and/or tenant by

creating noises audible outside the condominium unit which he occupies, by violating the rules of

3525 or by otherwise interfering with the peaceful enjoyment by other Owners and tenants of their

condominium unit and the common areas, the Board or the Manager may give notice to the

Owner of such condominium unit to cause such disturbances or interference to be discontinued.

After (i) two (2) notices of separate violations have been given and the Owner fails to cause the

violations to cease; (ii) ten (10) days prior written notice to the Owner of such condominium unit;

and (iii) an opportunity for such Owner to have a hearing before the Board, the Board may, to the

extent permitted by law, revoke its permission to allow the occupancy by the child of the

condominium unit, if such permission has been given, and may terminate the tenancy of the

leaseholder in such condominium unit as provided in the Declaration of Condominium and, in

addition, may exercise any and all rights at law or in equity.

5.02 Children shall not be permitted to play in the common area halls, stairways, garages, or elevators.

5.03 No bicycles, scooters, shopping carts, or similar vehicles shall be allowed to stand in the common

area halls or passageways of the building.

5.04 There shall be no parties of minors in the common areas of the building or inside condominium

units without written permission of the sponsoring Owner, who shall give written notice in advance

to the Building Manager. Further, all such parties must be attended by the sponsoring adult

Owner and have adequate adult supervision. The Owner shall be fully responsible for any

damage that may occur during the period of the party.

5.05 Minors are not permitted to operate exercise equipment in the exercise room unless accompanied

by parents who have signed the general release form supplied by the Manager.

COMMON AREAS Section 6

6.01 The common area, halls and stairways of the building shall not be obstructed nor used for any

purpose other than ingress to and egress from the condominium units in the building and fire

equipment shall not be obstructed in any way.

6.02 Children shall not be permitted to play in the public halls, stairways, elevators, or garages.

6.03 No article or object of any type shall be placed in the stairway landings. This is in compliance with

fire regulations.

6.04 No bicycles, scooters, shopping carts or similar vehicles shall be allowed to stand in the common

area, halls, or passageways of the building.

6.05 Any item placed in any hallway shall be subject to approval by the Board of Directors and review

by fire inspectors and subject to removal.

6.06 The Board has the authority to designate a “Special Use” for certain common areas.

COMPLAINTS, KEYS AND MISCELLANEOUS Section 7

7.01 To insure prompt and effective action relative to complaints, requests, and suggestions, Owners

are asked to submit such matters in writing. A form is available in the Management Office.

Neither the Board of Directors nor the Manager can assume responsibility for complaints,

requests, or suggestions submitted verbally. Please do not make these requests in person to a

Board Member; direct them to our Management Office in writing. However, minor matters such

as requests for housekeeping or maintenance service, can still be taken over the phone or

verbally by the Manager.

7.02 No Owner shall make or permit any disturbing noises or noxious odors i.e. pipe, cigar, or cigarette

smoke, in the building or do or permit anything to be done therein which will interfere with the

rights, comfort, health, or convenience of other Owners.

7.03 No Owner shall play upon or allow to be played upon any musical instrument or permit to be

operated a phonograph, radio or television loud-speaker in his unit between the hours of eleven

o'clock (11:00) PM and the following nine o'clock (9:00) AM if the same shall disturb or annoy

other occupants of the building.

7.04 No radio or television antenna shall be attached to or hung from the exterior of the building without

the approval of the Board of Directors.

7.05 Keys, Lock-out Policy: Unit Owners are responsible for maintaining their own keys to prevent

locking themselves out of their unit. The Building Management is not responsible for providing

entry to locked-out unit Owners.

The Building Management will provide lock-out entry services during office hours!

Providing a unit key has been given to the Management Office by the unit Owner.

After office hours and before 10:00 PM, the front security will attempt to contact a

Board member for assistance. A charge to the unit Owner may be levied for this

service.

If no assistance is available, or after 10:00 PM, the unit Owner will need to call a

locksmith.

For leased units, see LEASES, SECTION 16.

CONSTRUCTION PLANS Section 8

8.01 No permission for additional build-outs will be permitted until an engineering study is made

concerning the heating and cooling capacity of our present facilities, at the expense of the Owner.

8.02 A set of plans showing any and all modifications of any condominium unit must be presented to

the Board of Directors. Approval in writing by the Board must be given, before any such

modifications are made. The modifications must then be made only in accordance with the plans

as approved by the Board.

8.03 A building permit from The City of Dallas must be posted inside of the front door of the unit during

construction. A photo copy of this permit must be presented to the Building Manager before any

remodeling or construction can start.

8.04 A construction security deposit will be required prior to approval of any remodeling or construction.

8.05 No supplementary air-conditioning or heating system may be installed without approval of the

Board of Directors.

8.06 No blinds, awnings, or other material attachments will be permitted to cover or extend from the

exterior or balcony.

8.07 No Owner shall make or attempt to make within his unit any repairs, alterations, modifications, or

innovations to the air-conditioning, electrical system, water system, or to any structure, service

facility, or any other common appurtenance which might adversely affect other Owners, unless

such work is expressly authorized by the Board of Directors and is conducted under the direct

supervision of the Building Manager. Any unauthorized work affecting the common interest and

deemed hazardous in any way may be corrected by the Building Manager at the Owners’

expense.

8.08 Any window replacement requires that an energy efficient grey tinted, insulated, or thermopane

type glass be used. Single pane windows cannot be replaced.

8.09 If a window is broken, unit Owner is responsible for replacement of single or double-pane glass.

8.10 The Board of Directors reserves the right to have an added maintenance charge on any increase

in the air-conditioning, i.e. window units, heating system, or electrical system, which is added to

any condominium.

8.11 In remodeling units, one hour fire-block wall-board or equal material must be used in all walls and

approved by the Manager before such usage.

8.12 Spray painting will be allowed inside any condominium providing all HVAC vents, smoke

detectors, etc. are taped and covered. 3525 has a central HVAC system and failure to do this

could be hazardous to others health.


(cont'd)

8.13 No Owner doing the work himself nor any contractor may use any of the building's tools, shops, or

garage space. All such work must be done inside the unit or off the 3525 premises.

8.14 Owners or contractors may not work on any remodeling on Saturdays, Sundays, or legal holidays,

and no work shall be done past 4:30 P.M. The Owner having work done will be legally

responsible for keeping all hallways, elevators, etc., clean. If 3525 has to spend any time cleaning

a hallway, elevator, etc. as a result of work done by the contractor, the Owner will be fully charged,

including all over-time pay, if any. Arrangements to use the trash bin by the contractor must be

made with the Management Office so that charges can be made accordingly, or the Owner will be

charged for the full use of the bin.

8.15 All contractors must place a protective covering on the carpet of the floor they are working on from

the elevator to the unit they are working in. This protective covering must be put down each day

they are working in the unit, and must be taken up each night before they leave. If the contractor

fails to do so, as directed, a fine will be imposed.

CONTRACTORS’ WORK PROCEDURES

Section 9

9.01 3525 RULES FOR CONTRACTORS

In order to establish a working arrangement between our maintenance people, housekeeping staff,

security, contractors, unit Owners and workmen from all trades, the following rules have been

established.

1. Legal building permit must be posted inside of the front door of unit being renovated and

be plainly visible during entire work period and inspector called on completion.

2. All material vehicles and workmen are to use back entry gate and all contractors and

workmen will sign in and out of the building using the register provided at the back

security desk. Security will provide a temporary identification badge which the

contractor MUST wear at all times while on Association property.

3. Doors to condominiums must be closed while work is proceeding within. If found open;

rule #9.23 will apply.

4. No work will be permitted in the building before 9:00 AM or after 4:30 PM weekdays nor

on weekends or holidays.

5. Hallways, corridors and doorways must be protected when materials and furnishings are

brought in or out.

6. You are expected to confine your activities to the area in which you are working. No

loitering throughout the building. Smoking in unauthorized areas will cause a $25.00 fine

to be deducted from the cash deposit.

7. The freight elevator is not to be held on floors. KEEP IT MOVING. All maids, porters and

unit Owners in the building use it, especially for laundry. We have to share.

8. Please do not wedge the doors of the freight elevator to keep them open. It ruins the

adjustment on the doors.

9. DO NOT USE THE FRONT ELEVATORS

10. Park your cars on the upper deck of the parking garage at all times.

11. Trash trailers may be parked at the back entrance for short periods of time only. Please

coordinate this with the back security person.

12. Please do not ask to borrow the maintenance staff's tools and equipment.

13. Debris is not to be placed in the trash chutes, on the floors or thrown down air shafts. The

trash compactor is not equipped to handle construction materials. The building dumpster

will not be used by contractors.

14. When working in condominiums, always be conscious of open patios and windows. Great

care must be taken to insure that nothing is dropped, thrown or pushed from an open

area.

15. Food wrappers, such as lunch sacks, candy wrappers, drink bottles, cans and cartons are

not to be left on the construction site or in the vending area. These items cause

unwanted bugs and are unsightly. There is a trash can next to the vending machines;

please use it. Please pickup and dispose of all trash when the work day is over.

16. All trash and debris is to be put in containers before being placed on the freight elevator

and disposed of by construction crew.

17. When painting or doing demolition work in one of the units, it is important to cover the

return air ducts and smoke alarms so the dust or fumes is not carried back through the

central air conditioning system nor are smoke alarms set off. Contractor MUST notify

the Maintenance Department as to the scope of work being performed and to

ensure that all return air ducts and smoke detectors were properly covered prior to

any work being started.

Page 1 of 4


Section 9

(cont'd)

9.01 3525 RULES FOR CONTRACTORS (cont'd)

18. All plans for the renovation must be supplied to the Building Manager’s Office. No

admittance to the building for work will be allowed unless all plans are submitted.

19. Work which will affect the common area in any way must have the Association's

approval...i.e.-ceilings, floors, exterior walls, windows and balconies.

20. Replacing of windows may be done by using grey tinted, insulated, or thermo-pane type.

The Board will not approve single pane glass, due to its energy, heat, and air conditioning

loss.

21. Do not touch the TV antenna or fire alarm system!!! Call the Building Manager's Office at

(214) 526-3525 for assistance. Repairs for damage to the system will be billed to the unit

owner per rule #9.23.

22. Do not attempt to move or change the house phone!!! Call the office at (214) 526-3525 for

assistance. Repairs for damage will be billed to the unit owner.

23. A $1,000.00 security deposit is to be left in the Management Office before starting any

work in a condominium. This is to cover any damages, extra work by building employees

or other cost involved incidents caused by construction work. The amount involved in any

incident to be deducted from the security deposit with any remaining amount to be

returned upon completion of the construction job.

24. All demolition work may be done between the hours of 10 am to 4:30 pm. No demolition

work may be done outside of these hours. All trash and debris must be put in containers

supplied by the contractor. Under no circumstances may a contractor use the trash

containers belonging to 3525.

One copy of these Contractors Rules is to be signed and turned into the Management

Office along with the security deposit before a job may be started.

9.02 THE FOLLOWING ARE SUGGESTIONS AND RECOMMENDATIONS FOR

REMODELING BASED ON BUILDING'S PAST EXPERIENCES

1. Any appliance requiring a sump pump such as an icemaker please make sure the unit

Owner is advised and shown a way to immediately cut off water in unit. In the past when

the sump pump has failed the water continued to run and has flooded lower floors at the

expense of the unit Owner.

2. Flooring - Since marble and wood are noisy they require extra insulation.

3. When turning closets into bookcases, etc. please insulate behind wall as there is another

family living on the other side of the wall. Owners have no privacy from neighbors due to

the lack of insulation.

4. In kitchen, place rubber bumpers on backs of drawers. This is simple to do when

installing cabinets.

9.03 SPECIFICATIONS FOR VENTING, PLUMBING AND ELECTRICAL WORK

1. All dryers shall be connected to the existing vent stacks as follows:

In Units A, D and E the four inch round sheet metal (24-gauge) vent shall be connected to

the existing exhaust stack that is presently venting in the maid's closet adjacent to the

corridor. The owner of the D Unit shall have the option of running the vent duct to the

exhaust riser serving the bath in Unit C.

2. The exhaust serving Unit B shall be connected to the exhaust riser near the A Unit

located between baths 1 and 3 in A Unit directly behind the kitchen in the units.

3. The exhaust riser for C Unit shall be connected to the existing exhaust stack serving Unit

B.


Section 9

(Cont’d)

9.03 SPECIFICATIONS FOR VENTING, PLUMBING AND ELECTRICAL WORK (cont'd)

4. All plumbing serving the washing machines shall be connected to the existing plumbing

stacks in the closest proximity to the washer unit. The material for the two inch waste

connection for the washer shall be all copper pipes. The washer shall discharge open site

into this waste line. The 1/2 inch water pipe serving the washer shall be type "L" soft or

hard copper and shall include a shutoff valve.

5. Should the Owner of the unit desire to locate the washer/dryer at a location other than the

kitchen wall near the service entrance to the unit, for instance in the breakfast area in

some of the larger units, the Owner of the unit will be permitted to connect the exhaust

from the dryer to any existing toilet exhaust riser. In no case is the Owner of the unit to tie

the exhaust from the dryer into existing ducts that are serving as kitchen exhaust.

9.04 INSURANCE REQUIREMENTS FOR CONTRACTORS WHO PERFORM WORK AT

3525 TURTLE CREEK

Certificate of Insurance should be made to the following: "The 3525 Condominiums

Council of Co-Owners, 3525 Turtle Creek Blvd., Dallas, TX 75219

The following coverage is our minimum requirements; for larger and more detailed jobs we

require additional insurance.

Comprehensive General Liability Umbrella Catastrophe Liability

Bodily Injury Liability $1,000,000 each occurrence and in the

aggregate

$500,000 each occurrence

$500,000 aggregate completed operations

Property Damage Liability Workers' Compensation Ins.

(Including Broad Form Property Damage) Statutory coverage for State of Texas

$100,000 each occurrence Employer's Liability - $100,000

$100,000 aggregate

Comprehensive Automobile Liability

Bodily Injury

$250,000 each person


Page 3 of 4


Section 9

(Cont’d)

Explanatory notes:

l. Explosion, collapse and underground damage (XCU) coverage shall be maintained by the

contractor, and such insurance coverage shall be confirmed in the Certificate of

Insurance.

2. Liability Insurance shall be provided on the comprehensive forms both Automobile and

General Liability coverage.

3. The contractor shall require all subcontractors to furnish insurance in the amounts

specified above.

4. Completed operations coverage shall be maintained for a period of at least one year

following completion of the contract.

5. The insurance companies must be financially sound and acceptable to The 3525

Condominiums and the unit owner.

Proof of coverage should be submitted on standard certificate forms of the insurance company

(ies). Also, the Certificate of Insurance must include statement to the effect that if the

policy is canceled or materially changed, ten (10) days prior notice will be mailed to The

3525 Condominiums Council of Co-Owners.

I HAVE READ, UNDERSTOOD AND AGREE TO COMPLY WITH ALL 3525 RULES

FOR CONTRACTORS AND WILL BE RESPONSIBLE FOR FULL COMPLIANCE.

_______________________________________

Unit Owner

_______________________________________

Authorized Agent for Contractor

1/1/96

Page 4 of 4

DELIVERIES Section 10

10.01 SMALL DELIVERIES: There is a security service entrance at the rear of the

building. All small deliveries should be made through this entrance.

10.02 LARGE DELIVERIES: When a large delivery is to be made to the building, the delivery

man should be notified by the Owner placing the order that the delivery is to be at the rear

entrance of 3525 Turtle Creek. This delivery must be scheduled with the Management Office

and the freight elevator reserved. (There may be a charge for elevator use).

10.03 Deliveries which tie up an elevator may be made only between the hours of 8:00 AM

and 4:30 PM. Elevator must be reserved in advance.

10.04 Deliveries by 3525 staff are made to Owners unit at approximately 11:00 AM and 3:00

PM daily. If an Owner is not in, a note will be placed in your side-box in the mail room,

notifying you that a package has arrived. The package should be picked up at the Rear Security

Office. If a unit Owner has laundry and cleaning to be picked up, it should be marked clearly

with your name and name of your cleaning company to receive them and brought to the Rear

Security Office.

The Board permits newspapers to be delivered to your door, however if security

becomes an issue, this service may be discontinued. An Owner should start and stop his

daily newspapers directly with the Circulation Department of the newspaper. Please notify

the Management Office when you have made these arrangements, the Management Office

cannot store your papers while you are out of town!

10.05 For your convenience, there are delivery carts at the rear entrance. Also, there are

carts for holding garment bags and luggage. Please return them immediately to the

rear entrance for other Owners' use. Please do not leave them in your unit and do

not leave them in the hallway.

10.06 Authorized building personnel receiving registered or insured packages will sign receipt

and deliver the parcel to the owner in person and have them sign the register book. If an

Owner is not at home, the package will be held in The Management Office for safe-keeping

until the Owner returns.

10.07 The Management Office cannot be responsible for commercial or perishable

shipments.

ENTERTAINING Section 11

Any Owner of 3525 who is planning a sizable social event, to be held either in the Owners’

condominium or using the facilities of the Turtle Room should advise the Manager for assistance

and procedures.

The following is a list of recommended procedures to assist you in your preliminary planning:

11.01 The Owner will advise the Manager if the party event will be in their Condominium,

or make a reservation for the use of the Turtle Room (there will be a charge for use

of this room).

11.02 The Owner will advise the Manager of the approximate number of outside guests and

cars expected, and prior to the day of the party, furnish the Manager with a guest list

and state the scheduled hours the event will be held.

11.03 If the event is held during evening hours, an extra doorman or individual will be

necessary to check the guest list for 50 or more outside guests.

11.04 Outside parking service will be required for 30 or more expected outside guests, which

will average 21 automobiles to be parked. This will be arranged by the Manager. The Host will

be billed for this service.

11.05 Additional guard service will be required for 50 or more outside guests.

11.06 Controlled lobby elevator service will be required for 50 or more outside guests going to

an Owners’ unit. This can be handled by the additional guard service.

11.07 The extra personnel furnished by 3525 to meet these requirements shall be at the

expense of the Owner Host.

11.08 The following numbers must be considered maximum for the facilities of 3525 in order to

handle the guests adequately:

100 seated for catered dinner in the Turtle Room

125 to 150 for cocktail buffet

Maximum number of outside guests in an Owners’ unit must be considered by the

Fire Marshall and the Manager, so as not to inconvenience or disturb other

residents of the building.

11.09 There will be a service charge for arranging the tables and chairs in the Turtle Room

and for cleaning the kitchen and rearranging the room following the social function,

according to the time spent by the housekeeping staff (Owners may have their catering

company do these things, but must pass inspection of the Manager).

11.10 No Owner shall allow any non-resident of 3525 to use the Turtle Room for

entertaining, unless the non-resident is a co-host with the 3525 Owner.

Page 1 of 2

ENTERTAINING Section 11

(Cont’d)

11.11 When a catering service is to be used, certain procedures must be observed:

All arrangements for a catering service to use the facilities of 3525 must be

made with the Manager in advance of the social event.

When caterers enter the building with food, they should use the rear

entrance into the kitchen of the Turtle Room.

The 3525 kitchen must be completely cleaned and left in good order at the

expense of the Owner Host.

If a caterer is transporting food to the Owners’ condominium, the Manager

should be consulted to handle this in the most efficient manner. The freight

elevator should be reserved.

11.12 These recommended procedures are to assist you in planning your social functions

so that all details may be arranged in advance. This will enable you, as host and

hostess, to enjoy your party, knowing that your guests will be handled both efficiently

and courteously.

Your Board of Directors and the Manager will cooperate with you in assuring the

enjoyment of you and your guests.

Page 2 of 2

FIRE PROCEDURE & EQUIPMENT Section 12

INSTRUCTIONS IN CASE OF FIRE IN YOUR UNIT:

12.01 DO NOT DELAY, immediately proceed to hallway to red pull box and pull the handle

down to break the glass fuse. This will notify the Dallas Fire Department automatically.

This is a high rise building so it takes more time to get to the source

of the fire! Also call 911!

12.02 If the fire is not bad, attempt to put it out on your own, or use 3525’s hand fire

extinguishers. Do not attempt to use the water fire hose yourself, the water

pressure is powerful.

Fire extinguishers have been installed in all fire hose cabinets on every floor. These

extinguishers are suitable for ALL types of fires. If you have occasion to use one,

please notify the Management Office so that it can be refilled.

Every Owner is encouraged to have a fire extinguisher and smoke detector in his own

unit.

12.03 In case of an evacuation, walk (do not use the elevators) to the lobby floor and exit

by one of the emergency doors.

12.04 Under no condition prop open a fire door, that is, a door to one of the rear fire

escapes (by the garbage chutes).

12.05 Christmas trees are not permitted in individual condominium units, unless they are

planted living Christmas trees, such as Norfolk pines, or artificial non-flammable trees.

12.06 Your kitchen vent-a-hood should be cleaned periodically (once a month would be good)

to avoid a possible grease fire hazard.

GUEST ROOMS Section 13

3525 has one Guest Room on the Mezzanine Level, which may be rented for the enjoyment of

your guests.

13.01 A rental charge rate for the Guest Room is kept by the Manager. Limit of five (5) nights.

13.02 All requests for reservations must be made through the Management Office. These

reservations must be canceled 24 hours in advance, or the time of the reservation will be

charged to the Owner making the original request, if the room is not subsequently rented.

Guest Room can not be reserved more than six (6) months in advance. No single Owner can

reserve Guest Room for both Thanksgiving and Christmas. They may select one or the

other, but not both.

13.03 Upon arrival of the Guests who are to occupy the Guest Room, please register them

immediately in the Management Office or Front Security Station. It is necessary that we

have this registration in order to keep accurate records and preserve the security of our

building.

13.04 We must require a 12:00 noon check-out time, in order to prepare the room for other

guests. Check with the Manager if this is a problem.

All long distance telephone calls made from the Guest Room must be credit card or

collect!

INFORMATION FOR OCCUPANTS IN THE 3525 GUEST ROOM

13.05 Your Guest Room key can be picked up in the Management Office or at the front Security

Desk.

13.06 Check-out time is 12:00 noon. When checking out, please drop the keys through the

door slot in the Management Office. The service charge for the Guest Room will be billed

to your 3525 Host.

13.07 A small refrigerator is provided for your convenience. In the First Floor Rear Hallway, we

have coin operated vending machines for snacks and soft drinks, as well as a bill

changer.

13.08 A unisex Exercise Room and Sauna Bath is available on the Mezzanine Floor, on the way

to the pool.

13.09 Laundry facilities, ice machine, and drinking fountain are located on the Mezzanine Rear

Hall. No cigarettes are sold in 3525.

13.10 A list of the swimming pool rules are posted at the pool.

13.11 If service is needed, please call the Management Office at 526-3525. Office hours are

Monday - Friday 8:00 AM - 5:00 PM.

It is our pleasure to have you with us at 3525. We hope your visit will be enjoyable.

HOLIDAYS

Section 14

14.01 As indicated in section 2.07, The 3525 Condominiums recognizes the following as building holidays. The staff will be greatly curtailed on these days; we will operate with one maintenance person, full front entrance valet/security on duty. The balance of the staff will be off, but on call status in case of emergency. New Year’s Day Memorial Day July 4th Labor Day Thanksgiving Day 1/2 day Christmas Eve (off at 1 PM) Christmas Day

14.02 No holiday music, discharge of firearms, or offensive noises are permitted. See COMPLAINTS, KEYS AND MISCELLANEOUS, SECTION 7.

14.03 No fire works of any type can be ignited or displayed on the 3525 premises at any time.

14.04 Live Christmas trees are not permitted in individual condominium units, only artificial non-flammable trees; this is strictly enforced for your safety.

14.05 Owners are permitted to put decorations on their unit entry a door, providing it is in good taste - but nothing can be displayed in the common areas unless it is at the specific direction of the Board.

14.06 Every Christmas your Board of Directors will request a cash donation for the Building Christmas Fund. This money will be distributed to our staff based on years of service, job responsibilities and other criteria established by the Board. You can make personal contributions if you so desire.

INSURANCE Section 15

15.01 3525 does insure the building against loss by fire, windstorm, hail and certain other perils.

15.02 3525 does assume the risk and carries liability insurance on all public areas, including all

hallways.

15.03 3525 does insure the glass above the lobby level for loss due to windstorm, hail and

certain other perils.

15.04 3525 does not insure Owners’ property against fire, theft, water damage, mysterious

disappearance, vandalism or malicious mischief, whether it is located in a unit, in the

hallway, in the assigned storage area, in the garage or elsewhere.

15.05 3525 does not assume the risk or carry liability insurance for accidents that occur inside

a condominium unit.

15.06 You may receive a more detailed explanation by consulting with the Manager.

15.07 Every unit Owner is required to purchase a comprehensive personal

liability policy for his own protection. A certificate of this coverage

must be delivered to the Management Office annually.

LEASES Section 16

16.01 Unit Owners, their heirs or estates presently have the option of leasing their condominium units. This option is at the pleasure of The Board of Directors. If at any time, the Board feels that 3525 has too many rentals and is at the risk of becoming a “rental” building the Board can (i) restrict the number of rental units (ii) prohibit all rentals or act in any manner they feel is in the best interest of the majority of Owners of The 3525 Condominiums.

16.02 Every lease must be presented to the Board for their acceptance or rejection. The Board reserves the right to cancel any lease, and has no responsibility to the Owner for future lease payments if the tenant does not abide and conform to the rules of The Condominium Association as outlined in this handbook or enacted at a later date. An administrative fee is charged for this service.

16.03 The Board reserves the right to charge a security deposit on any leased unit without prior notice to unit Owners if they feel this necessity.

16.04 The lease form used is the decision of the Owner, but it should be a Condominium Lease, stating that the tenant has read the rules of The Association and agrees to abide by them and is aware of the restrictions of community living.

16.05 All leases must be for a minimum of one year. Less moving in and out saves wear and tear to our buildings’ hallway decor.

16.06 Unit Owners are always fully responsible for their tenants' actions and charges while the lease is in effect.

16.07 The Management of 3525 is not responsible for providing keys for locked-out residents.

During regular office hours, the Manager will be of assistance - if a unit key has been given by the unit Owner to the Management office. A charge may be levied for this service.

If the unit Owner lives at 3525, they must accommodate their tenant in a lock-out situation.

Should the unit Owner not be available and the Management office is closed, tenant should call a locksmith to gain access.

16.08 Freight elevator must be reserved. See MOVING, SECTION 17.

16.09 Any maintenance or service requests to a rental unit must be made by the unit Owner as prescribed. The Building Management will not respond to tenants' requests, this is an Owner or Landlord responsibility.

MOVING Section 17

(Updated 8/1/97)

17.01 In planning to move large household articles and/or furnishings in or out of the building, all

arrangements must be made in advance with the Manager, in order to coordinate use of

the freight elevator. There is a daily non-refundable fee of $250.00 and a refundable

security deposit of $1,000.00 payable prior to moving day.

17.02 In consideration for your neighbors, no moving may be started before 8:30 AM, and must

be concluded by 4:30 PM, in order to release the freight elevator.

17.03 No personnel from a moving or transfer company will be permitted in the building after

5:00 PM.

17.04 The unit owner is responsible for any damages, made by the moving company to the

building halls, wallpaper, carpet, paint elevator entrance, or elevator.

17.05 If it is necessary to use the hoist on the roof of the building, contact the Manager to

reserve the hoist three (3) days in advance. There will be an hourly charge for use of the

hoist and outside contractor operator.

OWNERS’ EMPLOYEES Section 18

18.01 All regular and occasional help employed by Owners of the building are required to park

their automobiles on the top level of the garage.

18.02 All Owners should inform their personal housekeepers, nurses, chauffeurs and porters to

enter and leave the building via the rear service elevator and rear entrance.

Housekeepers carrying laundry must use the service freight elevator.

OUT OF TOWN PROCEDURE (OWNERS) Section 19

19.01 When an Owner goes away in the summer, all thermostats should be set at 75 degrees,

with the blinds closed.

19.02 When an Owner goes away in the winter, all thermostats should be set at 60 degrees,

with the blinds closed.

19.03 When an Owner goes away in the spring or fall, all thermostats should be set at 70

degrees, with the blinds closed.

19.04 When leaving for a period of two weeks or longer, you may ask the Management Office

personnel to store your mail. This must be done in writing and 3525 assumes no

responsibility for missing mail or packages. Management cannot store your newspapers -

- with written permission, we will open your unit and place them inside.

19.05 When going away on vacation, you may arrange with the Management Office to have

housekeeping staff water your plants, on a flat charge basis per entry.

PARKING Section 20

20.01 Valet parking is available to all Owners’, guests and visitors. This service is voluntary;

you agree to assume all risks regarding your vehicle and its contents.

20.02 Cars must never be left at any time in an area marked as a fire lane or no parking; they

are subject to towing at your expense.

20.03 The porte cochere at the front lobby entrance is for sheltering those getting in and out of

cars. If you elect not to utilize our valet service, please do not leave your car parked

there.

20.04 If you self-park, please use only the two parking spaces assigned to you. Extra cars

should be parked in the outside top of garage parking area.

20.05 An Owner shall not use, nor shall he permit his family, guests, or invitees to use parking

spaces of other Owners. The Owners’ Board and the Manager shall have the right to

remove such vehicles parked in violation of this rule at the expense of the respective

Owners thereof, or take appropriate means to see that such wrongful parking is not

repeated.

20.06 Due to the increased ownership of campers, motor homes, trailers, etc., there shall be a

time limit on parking these vehicles on the upper garage level. Excessively heavy weight

vehicles are forbidden in/on the garage. You may park overnight, for loading or

unloading, but the vehicle must not remain longer than twenty-four (24) hours. All major

loading or unloading must be done through the rear entrance of the building, never

through the front lobby door.

20.07 Bicycle parking is permitted in the garage near your parking space. If it intrudes on aisles

or traffic ways, it will be moved. 3525 will not be responsible for cut/damaged locks.

20.08 No vehicles shall be left standing in the garage or a parking space in a non-operative

condition, nor shall there be any repairs done to vehicles in these areas.

20.09 An Owner shall not cause or permit the blowing of a horn of any vehicle in which he, his

guests or family shall be occupants, approaching or in the parking areas or in the building

or garage.

PETS Section 21

(Updated 2/12/98)

21.01 Prospective Owners with a reasonably acceptable pet may be considered as purchasers

of a condominium unit. The Board of Directors will give consideration to such applications

of Owners individually. No new pet shall exceed 25 lbs. in weight or 16” in height from

ground to nose. Pets in the building prior to August 1, 1997 exceeding these

requirements will be grandfathered in, but may not be replaced. Any dog exceeding 50

lbs. must be muzzled while in any of the buildings common areas such as hallways,

freight elevator, and service lobby. Tenants are not allowed to have dogs.

21.02 Pet Owners shall be held completely responsible for all damage their pets do to 3525.

Pets may not be kept or bred for any commercial purpose and shall have such care and

restraint so as not to be obnoxious or offensive on account of noise, odor or sanitary

condition.

21.03 No pet shall be permitted in a common area unless carried or on a leash. No pet shall be

left unattended outside the Owners’ residence. Pets are required to enter and exit the

building through the rear door on the first floor.

21.04 No pet is allowed in the swimming pool or surrounding garden area.

21.05 Solid waste should be scooped and placed in sealed plastic bags for appropriate disposal.

21.06 Pets shall not be permitted on the front elevators or in other public areas of the building.

21.07 Pets must NOT be confined to the balcony when the Owner is absent from the property.

21.08 Cat litter waste must be placed in sealed plastic bags and disposed of daily.

21.09 Pets of nonresidents are not allowed in the building.

21.10 Pet Owners must not allow their pets to enter other condominium units without the

consent of the occupant.

21.11 If a pet disturbs other Owners by barking, biting or in any way becoming obnoxious, the

Council shall give notice to the Owner of such pet to cause the annoyance to be

discontinued.

After (i) repeated violations of this provision; (ii) ten (10) days prior written notice to the

Owner of such pet; and (iii) an opportunity for such Owner to have a hearing before the

Board, the Board may revoke its permission to keep the pet within the condominium and

the pet shall be taken from such Owner and given to the Society for the Prevention of

Cruelty to Animals of Dallas County, Texas, or to such person or other entity not within the

condominium as such Owner may desire.

Page 1 of 2

PETS Section 21

(cont'd)

(Updated 2/12/98)

21.12 All pets must be registered with the Management Office with a picture for Owners’ file.

Proof of current vaccination will be a part of registration.

21.13 Current vaccination tags must be attached in a conspicuous place on the animals’ collar

or leash when pet is outside of the Owners’ unit.

21.14 Should an Owner wish to replace their (approved) pet with another, they must first get

Board approval by registering the prospective new pet with the Management Office.

SECURITY Section 22

(Updated 8/1/97)

22.01 Keep in mind that proper and effective security requires the cooperation and attention of

all Owners.

22.02 There is a Guard at the Back Entrance from 8:00 AM to 5:00 PM, Monday - Friday. There

is no guard Saturday, Sunday and Holidays.

22.03 Admit no one to the building through the building doors or garage whose activity you will

not take total responsibility for.

22.04 Owners should let the Management Office know when they have service people or other

persons coming to their units. If the Owner is not at home when they arrive, the

Management Office must have permission from the Owner for such persons to enter the

unit, and to remain there alone while working. A 3525 employee cannot be spared to

remain in the unit as security until the work is finished. If permission has not been given,

the Management Office will have to refuse entry.

22.05 Advise the Front Entrance Staff or the Management Office of any suspicious person or

activity around or in the building.

22.06 When using the door to the swimming pool, close and lock it securely. Never place

objects in the door to hold it open.

22.07 A security lock system has been installed on all outside doors of the building. You must

buzz the Front Entrance Desk to gain entry.

22.08 There is a registry book in the Rear Office. Each delivery person, construction worker,

service person, etc., must state their name, company and the unit to which they are going.

The time of entry and exit from the building will be recorded. All repair people, etc. should

enter through the rear building driveway, located on Welborn Street.

STORAGE Section 23

23.01 Each Owner is assigned a storage space in the basement area by the Management

Office. Storage is prohibited in all other common areas.

23.02 Nothing shall be stored in the aisles in the storage areas.

23.03 No refrigerator or deep freeze is permitted in this storage space without written

permission of the Board of Directors.

23.04 No Owner shall use or store any flammable oils or fluids such as gasoline, kerosene,

naphtha, benzene, or other explosives or articles deemed extra hazardous to life, limb, or

property without, in each case, first obtaining written consent of the Board or Manager.

23.05 REMEMBER: 3525 does not insure your personal property against fire, theft, water

damage, mysterious disappearance, vandalism, or malicious mischief. If you wish to

insure your property in the storage area, make sure your insurance policy covers items

outside your individual condominium unit.

SWIMMING POOL Section 24

24.01 All persons going to the swimming pool must wear robes, T-shirts, or some cover-up over

bathing suit, and shoes or sandals.

24.02 When going to and from the pool, please take the elevator to the Mezzanine floor. Use

the exit in the rear hall area on that floor to walk down to the pool. No one in a swim suit

should enter or leave through the front lobby doors. Those disabled can enter through the

first floor storage area.

24.03 No running will be allowed in the pool area.

24.04 All Owners will be held financially responsible for any damage or vandalism caused by

guests.

24.05 Children are not safe at the pool unless accompanied by an adult.

24.06 Please do not remove the life-saver and rope from the hanger, UNLESS it is for an

emergency.

24.07 Please use only plastic or paper containers at the pool. No glasses or glass bottles are

allowed.

24.08 No pets of any kind are allowed in the swimming pool or surrounding garden area.

24.09 Please dry off before re-entering the building. Wear shoes or sandals so as not to wet the

carpeting.

24.10 Leave the pool area clean. Please pick up all trash and deposit it in the trash can located

in the pool area.

24.11 Always close the pool door securely, and make certain it locks behind you. Never prop

the door open.

24.12 The pool closes at 10:00 PM.

TRASH Section 25

25.01 Regular trash pick-ups are made from the freight elevator daily. All trash placed in the

elevator should be bagged and tied so it will not spill on pickup. Stack your newspapers!

Trash shall not be left at any other location within the building. Do not put your trash in

front of the freight elevator door (please advise your housekeeper if you have one) no one

is available to remove it, be considerate of your neighbor.

Trash pick-up schedule from the freight elevator:

Monday through Friday 5:00 PM to 7:00 AM

Saturday, Sunday, Holidays Anytime

25.02 Trash chute is for small bags, please, no coat hangers or cardboard boxes that may lodge

in chute. The building has a compactor in the basement.

WINDOWS AND BALCONIES Section 26

26.01 Balconies are “limited” common areas. You have exclusive use of your balcony although

it still remains under the common area responsibilities of the Board of Directors.

26.02 Nothing shall be hung, shaken, swept, or thrown from the doors, windows, or balconies

nor placed upon the window sills of the building. No fences or partitions shall be placed

on or affixed to any balcony without the approval of the Board of Directors. Your balcony

floor may be the ceiling area of the unit below you -- therefore it is important to get written

permission from the Board of Directors before you cover the floor area with rugs, tile, or

outdoor carpeting or alter it in any way. Alteration could cause water damage to the unit

ceiling below.

26.03 No radio or television aerial shall be attached to or hung from the exterior of the building

without the approval of the Board of Directors.

26.04 No shades, awnings, window guards, ventilators, or air conditioning devices shall be

installed or used in or about the building except such as shall have been approved by the

Board of Directors.

26.05 No sign, notice, or advertisement shall be inscribed or exposed on or at any window or

other part of the building; nor shall anything be projected out of any window of the building

without similar approval.

26.06 All draperies, curtains, or other window coverings that can be seen from the outside must

be a neutral color or have white linings.

26.07 If you have an outside faucet on your balcony and the temperature gets below freezing,

cut the water off and cover the faucet with an insulator cap. You will be responsible for

water damage to other units.

26.08 Please be careful while watering plants on balconies. Water running down from one

balcony to another can cause damage.

26.09 In placing articles on your balcony, please take precautions against high winds.

Especially, take measures to tape down or otherwise secure glass or glass-top tables.

26.10 Pets must not be confined to the balcony when the Owner is absent from the property.


HOA GOVERNING DOCUMENTS

AMENDMENT AND RESTATEMENT OF

THE 3525 CONDOMINIUMS

DECLARATION OF CONDOMINIUM

AUGUST 23. 1982

AND SECOND AMENDMENT

TABLE OF CONTENTS

Page

I. Amendment and Restatement of The 3525 Condominiums

Declaration of Condominium. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

II. Articles of Incorporation of 3525 Condominiums of

Council of Co-Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

III. By-Laws of The 3525 Condominiums Council of Co-Owners . . . . . . . . . . . . 33

IV. The 3525 Condominiums Council of Co-Owners Community

Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39




TABLE OF CONTENTS

ARTICLE 1 DEFINITIONS

Section 1.1 Definitions of Terms 1

Section 1.2 Definitions of Rights and Responsibilities 4

Section 1.3 Parking Spaces and Storage Spaces 5

ARTICLE II GENERAL PROVISIONS

Section 2.1 Use Restrictions 5

Section 2.2 Decoration, Maintenance and Repairs

of Residence Units 7

Section 2.3 Balconies 7

Section 2.4 Alterations of Common Elements 7

Section 2.5 Additional Provisions 7

ARTICLE III COUNCIL OF CO-OWNERS

Section 3.1 Authority to Manage 8

Section 3.2 Membership in the Council 8

Section 3.3 Voting of Members 8

Section 3.4 Meetings of the Council 9

Section 3.5 Board of Directors 10

Section 3.6 Actions without Meetings 11

Section 3.7 Officers 11

Section 3.8 Administration of the Condominium 11

Section 3.9 Accounting and Audit 12

Section 3.10 Right of Entry 12

Section 3.11 Notices 13

ARTICLE IV COMMON EXPENSE FUND; ASSESSMENTS; COLLECTION

Section 4.1 Common Expense Charges 13

Section 4.2 Budgets, Establishment of Common Expense

Charges and Special Assessments 13

Section 4.3 Payment of Common Expense Charges and

Special Assessments 14

Section 4.4 Enforcement 15

Section 4.5 Common Expense Fund 15

ARTICLE V INSURANCE

Section 5.1 General Provisions 16

Section 5.2 Individual Insurance 18

-i-

ARTICLE VI FIRE OR CASUALTY; REBUILDING

Section 6.1 Determination or Loss 18

Section 6.2 Rebuilding 19

Section 6.3 Repair of Residence Units 19

Section 6.4 Indemnity of Council 19

ARTICLE VII EMINENT DOMAIN

Section 7.1 General Provisions 20

Section 7.2 Taking of Common Elements 20

Section 7.3 Taking of Residence Units 20

Section 7.4 Payment of Awards and Damages 22

ARTICLE VIII TRANSFER OF UNIT; RIGHT OF FIRST REFUSAL

Section 8.1 Right of First Refusal 22

Section 8.2 Notice and Exercise of Right of First

Refusal 22

Section 8.3 Purchase by Nominee of Council 23

Section 8.4 Terms of Lease 23

Section 8.5 Application of Proceeds of Sale 24

Section 8.7 Perpetuity Savings Clause 24

ARTICLE IX AMENDMENT OF DECLARATION, BY-LAWS AND

RULES AND REGULATIONS

Section 9.1 Amendment of Declaration 25

Section 9.2 Amendment of By-Laws 25

ARTICLE X MISCELLANEOUS

Section 10.1 Estoppel Certificate 25

Section 10.2 No Partition 26

Section 10.3 Mortgages 26

Section 10.4 Enforcement 26

Section 10.5 Severability 27

Section 10.6 Ratification 27

-ii-




STATE OF TEXAS

KNOW ALL MEN BY THESE PRESENTS:

COUNTY OF DALLAS

THAT WHEREAS, James H. Coker, of Dallas County, Texas, has heretofore

submitted certain land and improvements more particularly described on Ex hi bit "A"

attached hereto and made a part hereof for all purposes to a condominium regime pursuant

to the provisions of the Texas Condominium Act (Texas Revised Civil Statutes, Article

l30la) by that certain Declaration of Condominium (the "Declaration of Condominium")

dated December 14, 1977, recorded in Volume 78002, Pages 0738 through 0811, inclusive,

of the Condominium Records of Dallas County, Texas;

`WHEREAS, James H. Coker, thereafter conveyed such land and improvements

subject to the Declaration of Condominium to 3525, Ltd., a Texas limited partnership,

whose general partner' is Lexington Capital Group, Inc., a Texas corporation, and whose

limited partner is James H. Coker, by Warranty Deed dated December 29, 1977, recorded

in Volume 78002, Page 0828, of the Deed Records or Dallas County, Texas (as corrected

by Correction Warranty Deed dated January 3, 1978, recorded in Volume 78004, Page

3300, of the Deed Records of Dallas County, Texas);

WHEREAS, Section 9.1 of the-Declaration of Condominium provides in pertinent

part that. it may be amended by an instrument in writing signed and acknowledged by

Members (including the Developer) having not less than seventy-five percent (75%) or the

votes in the Council entitled to vote thereon; and

WHEREAS, 3525 Ltd. has seventy-five percent (75%) of the votes in the Council

entitled to vote on an amendment, desires to amend the parking (Article I, Section 1.3),

insurance (Article V, Sections 5.1 and 5.2) and certain other provisions of the Declaration

of Condominium, desires to amend and restate the Declaration of Condominium in its

entirety, and desires to ratify and confirm the Declaration of Condominium, as amended

and restated, all as hereinafter set forth.

NOW, THEREFORE, 3525, Ltd. does hereby amend and restate the Declaration or

Condominium in its entirety to hereafter read as follows, to-wit:

ARTICLE I

DEFINITIONS

Section 1.1 "Definitions of Terms. When used in this Declaration of Condominium,

the words set out below shall have the following meanings:

-1-

(a) Board - The Board of Directors of The 3525 Condominiums Council of Co-Owners.

(b) Buildings - The residential building, the Garage and all other improvements now or

hereafter placed on the Land. The location of the Buildings on the Land are more particularly

described on Exhibit "B" attached hereto and made a part hereof for all purposes. The

Buildings and Residence Units are more completely described on the plats which are attached

hereto as Exhibit "C" and made a part hereof for all purposes.

(c) By-Laws - The By-Laws of The 3525 Condominiums Council of Co-Owners.

(d) Common Elements - The Common Elements shall be and include all of the Land and

Buildings except the Residence Units as defined herein and shall include, without limiting the

generality of the foregoing, foundations; supporting columns; girders; beams; slabs; supports;

dividing walls between two or more Residence Units or between Residence Units and

Common Elements; roofs; halls; lobbies; walkways; stairs; stairways; fire escapes; entrances

and exits of the Buildings; basements; grounds; gardens; the Garage; swimming pools; club

room; managerial offices and apartments; mailroom; areas used for storage of janitorial

supplies; maintenance equipment and materials; installations of all central services, including

power, light, gas, water, heating, air conditioning and waste collection; elevators; tanks;

pumps; motors; fans; compressors; ducts; driveways; and in general all apparatus and

installations existing for the common use or necessary or convenient to the operation,

maintenance and use of the property as a condominium including those which have been

designated as common areas and facilities on the plats attached hereto; and all repairs and

replacements of or additions to any of the foregoing. The lobbies, hallways, stairs, club room,

Land and other Common Elements intended to be used for passage or temporary occupancy

by persons are sometimes referred to herein as the "Common Areas".

(e) Condominium - The Land, the Buildings (including the Garage) and all other

improvements erected upon and rights appurtenant to the land and improvements. The

components of the Condominium are further herein classified as "Common Elements",

"Limited Common Elements" and "Residence Units", as defined herein. The legal rights,

duties of ownership, use and administration created by the terms of the Texas Condominium

Act, this Declaration of Con- dominium, the By-Laws and Rules promulgated thereunder are

also a part of the Condominium and are sometimes referred to as the "Condominium

Regime".

(f) Common Expense Charge - The assessment made and levied against each Owner

and his Residence Unit for management and operation of the Condominium and the

Condominium Regime and for repairs, maintenance and operation of the Common Elements

(including reserves for replacements), 1n accordance with the provisions hereof.

-2-

(g) Common Expense Fund - the accumulated Common Expense Charges collected or

received by and due and payable to the Council for use in the administration and operation of

the Condominium, the maintenance, repair, additions, alterations, or reconstruction of all or

any portion of the Common Elements and Limited Common Elements.

(h) Council - The 3525 Condominiums Council of Co-Owners, a Texas non-profit

corporation, the Members of which shall be the Owners of Residence Units within the

Condominiums Regime during the period of their respective ownerships, and the respective

heirs, personal representatives, successors and assigns of such Owners. The term "Council"

shall have the same meaning as the term "Council of Co-Owners" in the Texas

Condominium Act.

(i) Developer - 3525 Ltd., a Texas limited partnership, whose general partner is

Lexington Capital Group, Inc., a Texas corporation, and whose limited partner is James H.

Coker, of Dallas County, Texas, its successors and assigns.

(j) Easement - An exclusive right to use a particular part of the Common Elements for

the purposes for which they were designed and in compliance with the terms of this

Declaration, the By-Laws and the Rules and Regulations.

(k) Garage - That part of the Buildings designed for the parking of vehicles and

designated "Garage" on Exhibits "B" and "C".

(l) Land - The real property more particularly described on Exhibit "A" attached hereto

and made a part hereof for all purposes.

(m) Limited Common Elements - Those portions of the Common Elements reserved for

the exclusive use of the Owners of certain Residence Units to the exclusion of the Owners of

all other Residence Units.

(n) Mortgage - A pledge of or a security interest in a Residence Unit given to a creditor

as a security for the repayment of a loan made to an Owner.

(o) Mortgagee - The person or entity who holds a pledge of or security interest in a

Residence Unit to secure the payment of a debt.

(p) Owner - Any person or persons, firm, corporation or other entity who or which owns,

of record, one or more Residence Units in The 3525 Condominiums, or legal interest therein,

including the Developer, but the term "Owner" shall not include any Mortgagee.

(q) Parking Spaces - The spaces for the parking of vehicles within the Garage as shown

on Exhibit "C" attached hereto and made a part hereof for all purposes.

(r) Percentage Ownership Interest - The undivided interest in and to the Common

Elements associated with and appurtenant to each Residence Unit as set forth on Exhibit "D"

attached hereto and made a part hereof for all purposes.

(s) Residence Units - The 101 condominium units designated on Exhibits "B" and "C"

attached hereto, the boundaries of which shall be the interior surfaces of the perimeter walls,

floors and

-3-

ceilings and the exterior surfaces of balconies (balconies being designated as "terraces" on

Exhibits "B" and "C" attached hereto), and Residence Units shall include the portions of the

Buildings so described and the air space so encompassed, excepting Common Elements.

The term "Residence Unit" shall have the same meaning as the term "Apartment" as used in

the Texas Condominium Act. Included within the boundaries of each Residence Unit,

without limitation, shall be any finishing materials applied or affixed to the interior surfaces

of perimeter walls, interior walls, floors or ceilings (such as, but without limitation, paint,

wallpaper, vinyl wall or floor coverings and carpets); interior walls; and all utility pipes,

lines, systems, fixtures, equipment and appliances servicing only that Residence Unit

(whether or not within the boundaries of that Residence Unit). The boundaries of each

Residence Unit shall be the interior surfaces of perimeter windows and doors, perimeter

window frames, and perimeter door frames. Interior trim around windows and doors shall

be part of each Residence Unit and shall not be Common Elements. Unless otherwise

provided by law, the "exterior surfaces of balconies" as used in this definition shall mean

the area enclosed by (i) those horizontal planes being the top of the concrete floor surface of

the balcony and the plane of the ceiling of the Residence Unit of which such balcony is a

part, and by (ii) those vertical planes being the vertical exterior surfaces of the building and

those planes adjacent to the vertical exterior edges of the balcony.

(t) Rules and Regulations - The Rules adopted by the 3525 Condominiums Council of

Co-Owners concerning the management and administration of the Condominium Regime

and the use of the Common Elements in order to assure to all Owners the pleasures and

benefits of ownership of a Residence Unit and use of the Common Elements.

(u) Special Assessments - Any assessment over and above the Common Expense

Charge necessary for the preservation, management and administration of the

condominium.

(v) Storage Spaces - Those areas designated for the storage of personal property located

on the basement level of the building and designated as "Storage Areas" on Exhibit "C".

(w) Texas Condominium Act - Article 1301a of the Texas Revised Civil Statutes,

enacted in 1963, which permits the creation of condominium regimes and provides the basic

rules for their operation.

Section 1.2 Definitions of Rights and Responsibilities.

(a) Each owner shall have exclusive ownership of his respective Residence Unit and

shall have the common right to share, with all other Owners, in the use of the Common

Elements in accordance with the purpose for which they are intended and the provisions

hereof, without hindering or encroaching upon the lawful rights of the other Owners.

-4-

(b) Where the term "Owner" is used in the granting of licenses, easements or rights to use

Residence Units, Common Elements or Limited Common Elements, the family of such

Owner and each member thereof; such Owner's guests, tenants, servants, employees and

invitees shall also be entitled to the rights, easements or licenses so granted.

(c) The existing physical boundaries of each Residence Unit, or Residence Unit

reconstructed in accordance with the original plans therefor, shall be conclusively presumed

to be its boundaries regardless of settling, rising" or lateral movement of the building and

regardless of variances between boundaries shown on the plat and those of the building.

None of the rights and obligations of the Owners created herein, or by any deed delivered to

any Owner, shall be altered in any way by encroachments due to the settlement or shifting of

structures or any other cause. There shall be valid easements for the maintenance of said

encroachments so long as they shall exist; provided, however, that in no event shall a valid

easement for encroachment be created in favor of an Owner or Owners if said encroachment

occurred due to the willful conduct of said Owner 'or Owners.

Section 1.3 Parking Spaces and Storage Spaces. Parking Spaces and Storage Spaces

may be assigned and reassigned by the Board at any time and from time to time and, pending

assignment, may be used for visitors, guests and others performing any service, repair or

other function for the benefit of the Condominium, subject to Rules and Regulations

promulgated hereunder. Subject to the right of reassignment by the Board, Parking Spaces

and Storage Spaces, once assigned by the Board, shall be Limited Common Elements for the

exclusive use (but not ownership) of the Owner of the Residence Un1t.-to which they are

assigned; provided, however, each Owner of a Residence Unit shall at all times have the

exclusive use of at least one (1) Parking Space.

Notwithstanding the rights of exclusive use herein created for Parking Spaces and Storage

Spaces, the Garage and the basement level of the Buildings in which such Parking Spaces

and Storage Spaces are located shall be and always remain Common Elements.

ARTICLE II

GENERAL PROVISIONS

Section 2.1 Use Restrictions.

(a) All Residence Units shall be used only for residential purposes. For the purpose of this

provision, a Residence Unit shall be deemed to be used for residential purposes when it is

used to house persons and their belongings, without regard to whether the persons are

Owners of the Residence Unit or occupy the Residence Unit pursuant to a rental, leasing or

other arrangement. Except for the leasing or rental of any Residence Unit, no Residence Unit

shall be used for any commercial, business or professional purpose nor for church purposes.

The use of a Residence Unit for the maintenance of a personal

-5-

library. or for the keeping of personal business or professional records of accounts or for

the handling of personal business or professional telephone calls or correspondence shall

not be deemed to be a violation of this provision; but regular consultation with clients at a

Residence Unit is prohibited; provided; however, the Developer may retain ownership of

one or more Residence Units for use as models, sales and/or promotion offices in

connection with the sale or rental of Residence Units, or as apartments or as guest rooms

for exclusive use of guests and visitors of Owners.

(b) No noxious or offensive activities of any sort shall be permitted, nor shall anything

be done in any Residence Unit or in any Common Element which shall be or may

become an annoyance or nuisance to the other Owners.

(c) Notwithstanding any other provisions of this Article, the Developer may make

such use of the Common Elements and Residence Units as is reasonably necessary to

facilitate and complete any improvement of the Condominium, the operation of ~he

Developer's sales or rental efforts and the showing of the Condominium and any unsold

Residence Units therein; the provisions of this Article shall not prohibit the Council from

owning a Residence Unit for the use and enjoyment of the manager of the Condominium

or for rental to guests of Owners or from using the Common Elements in any reasonable

manner necessary in connection with the operation and maintenance of the

Condominium.

(d) Nothing shall be done in or kept in or on any Residence Unit, balcony, Storage

Space, Parking Space or Common Element which will increase the rate of insurance on

the Condominium or any other Residence Unit over that applicable to residential

buildings, or would result in uninsurability of the Condominium or any part thereof, or

the cancellation, suspension, modification or reduction of insurance in or on or covering

the Condominium or any part thereof. If, by reason of the occupancy or use of any

Residence Unit by any Owner " the rate of insurance on all or any portion of the

Condominium shall be increased, such Owner shall be personally liable to the Council for

such increase caused thereby and such sum shall be payable to the Council at the same

time and in the same manner as provided for the payment of the Common Expense

Charge.

(e) No Owner shall install, attach, or hang or allow to be installed, attached or hung

any equipment or wiring or electrical installations, television or radio transmitting or

receiving antennas. air conditioning units or any other like equipment or wiring in or

across any portion of any Common Elements; protruding from any balcony or through

any wall, floor, ceiling, window or door which is a Common Element, except as approved

by the Council. All radios, televisions, electrical equipment or appliances of any kind or

nature and the wiring therefor installed or used in a Residence Unit shall fully comply

with all rules, regulations or requirements of all state and local public authorities having

jurisdiction.

-6-

(f) Each Owner shall promptly and fully comply with any and all applicable laws,

rules, ordinances, statutes, regulations or requirements of any governmental agency or

authority with respect to the occupancy and use of his Residence Unit and with the

provisions hereof, and the By-Laws and Rules and Regulations promulgated hereunder.

Section 2.2 Decoration, Maintenance and Repairs of Residence Units. Any Owner

may decorate and redecorate, his Residence Unit and may make any improvements or

alterations within his Residence Unit (but not to Common Elements) and shall have the

right to paint, repaint, tile, wax, paper, or otherwise furnish or decorate any interior

surfaces of walls,' partitions, ceilings and floors within the Residence Unit. Each Owner

shall, at his own cost and expense, maintain his Residence Unit and all Common Elements

servicing only his Residence Unit (whether or not within the boundaries of the Residence

Unit) in good condition and repair.

Section 2.3 Balconies. No Owner shall paint, remodel or enclose any balcony or store

objects or things on such balcony or dry clothing or place other materials on such balcony

in any manner which 1s likely to impair the uniform appearance of the exterior of the

Building. An Owner may furnish a balcony with outdoor furniture in keeping with the

provisions of this Declaration and the Rules and Regulations promulgated hereunder.

Section 2.4 Alterations to Common Elements. No Owner shall do any act or

permit any act to be done in, on or to any Residence Unit, balcony, Parking Space,

Storage. Space or Common Element which will impair the structural integrity, weaken the

support or otherwise adversely affect the Buildings or any Common Element. Decorative

wall items such as lights, shelves and art work may be affixed to or installed on the interior

walls, floors, doors, and ceilings of any Residence Unit which are Common Elements

without prior approval of the Council provided such affixation or installation is done in a

good and workmanlike manner. Except for such affixation or installation of decorative

wall items, no Owner shall make any alterations to any of the Common Elements

(including walls, windows and doors which are. Common Elements) nor install, attach,

paste or nail any article thereto without the prior approval of the Council.

Section 2.5 Additional Provisions. The Council, by provisions of its By-Laws or by

Rules and Regulations enacted pursuant to the provisions hereof, may provide such

additional rules and regulations for use of the Common Elements and Limited Common

Elements, the Parking Spaces, the Storage Spaces, and the Residence Units 8S are

necessary or desirable in the judgment of the Council for the operation of the

Condominium provided such Rules and Regulations and By-Laws are not in conflict with

the provisions of this Declaration of Condominium. Such By-Laws, Rules and Regulations

shall be applicable to the Common Elements and the Residence Units as though set forth

herein at length.

-7-

ARTICLE III

COUNCIL OF CO-OWNERS

Section 3.1 Authority to Manage. The affairs of the Condominium and

Condominium Regime shall be administered by the 3525 Condominiums Council of Co-

Owners, a Texas non-profit corporation. The Council shall have all rights, powers and

duties of the "Council of Co- Owners", as that term is used in the Texas Condominium

Act. The Council shall have the right, power and obligation to provide for the

maintenance, repair, replacement, administration an1 operation of the Condominium and

Condominium Regime as provided herein, in the By-Laws and in the Rules and

Regulations. The business and affairs of the Council shall be managed by its Board of

Directors.

Until the election of the first Board (as provided for herein- below) the initial Board

of Directors shall consist of three (3) persons designated as initial Directors in the Articles

of Incorporation of the Council, none of whom need be members of the Council. If a

vacancy occurs in the initial Board prior to the first election by the Council, such vacancy

shall be filled by a person designated and appointed by the Developer who need not be a

member of the Council. The Board may engage an entity, whether or not affiliated with

the Developer, as the manager of the Condominium; provided, however, any agreement

for professional management of the Condominium, or any other contract providing for

service by the Developer, ~hall provide for termination by either party without cause or

payment of a termination fee on ninety (90) days or less written notice and shall be for a

term not to exceed three (3) years. Such contract shall provide for payment to the manager

of a management fee no higher than the fees usually paid to managers of similar high-rise

residential buildings (whether rental or condominium) in Dallas, Texas. After the election

of the first Board, and upon the expiration or earlier termination of any such contract, the

Board may delegate any of its duties, powers or functions to a manager selected by the

Board. The members of the

Board shall not be liable for any omission or improper exercise by the manager of any

such duty, power or function so delegated. Such dclegat1on shall be by written instrument

executed by a majority of the members of the Board.

Section 3.2 Membership in the Council. Each Owner (and only an Owner) shall be

a member of the Council so long as he shall be an Owner and such membership shall

automatically terminate when he ceases to be an Owner. Upon the transfer of ownership or

a Residence Unit, the new Owner succeeding to such ownership shall likewise succeed to

membership in the Council.

Section 3.3 Voting of Members. Except as provided below for voting by the

Developer, there shall be one (1) vote in the affairs and management of the Council for

each Residence Unit; provided, however, Penthouse Unit 22A and Penthouse Unit 22B

shall each have two (2) votes. In the event that ownership interests in a Residence Unit are

owned by more than one Member of the Council. the Members

-8-

who own a fractional interest in such Residence Unit aggregating more than 50% of the

whole ownership thereof shall appoint one Member who shall be entitled to vote the vote

of that Residence Unit at any meeting of the Council. Such designation shall be made in

writing to the Board of Directors and shall be revocable at any time by actual notice to

the Board or upon the death or judicially declared incompetence of any one of the

Members. In the event that a Residence Unit is owned by more than one Member and no

single Member is designated to vote on behalf of the Members having an ownership

interest in such Residence Unit, then none of such Members shall be allowed to vote. All

Members of the Council may be present at any meeting of the Council and may act at

such meetings either in person or by proxy.

The Developer shall be entitled to three (3) votes in the affairs and administration

of the Council for each Residence Unit owned by it until such time as the number of V

owned by the Owners other than the Developer is equal to or exceeds the number of votes

to which the Developer is entitled under this Section, whereupon the Developer shall be

entitled to one (1) vote for each Residence Unit owned by the Developer.

Section 3.4 Meetings of the Council. (a) The first meeting of the Members of the Council shall be held when called by the

initial Board upon ten (10) days written notice to the Members. Such written notice may

be given at any time but must be given not later than thirty (30) days after at least fifty

percent (50%) of all the Residence Units have been sold by the Developer, a deed

therefor recorded and the purchase price paid.

(b) Thereafter, an annual meeting of the Council shall be held in the Building or at

such other place as may be designated by the Board at 8:00 o'clock p.m. on the third

Tuesday in January of each calendar year (or the first business day thereafter if such day

is a governmental or religious holiday). At the discretion of the Board, the annual

meeting of the Council may be held at such reasonable time (not more than sixty (60)

days prior to or subsequent to the aforesaid date) as may be designated by written notice

of the Board delivered to the Members not less than ten (10) nor more than sixty (60)

days prior to the date fixed for said meeting.

(c) At the annual meeting, the Board shall present a certified audit of the Common

Expense Fund, itemizing receipts and disbursements for the preceding calendar year, the

allocation thereof to each Owner and the estimated Common Expense Charges for the

coming calendar year. Within thirty (30) days after the annual meeting, the statements

and estimates presented at the annual meeting by the Board shall be delivered to all

Owners.

(d) Special meetings of the Council may be called by the President or any Vice-

President at any time or may be called upon petition to the President by Members having

ten percent (10%) of the votes in the Council or by a majority of the Board of

-9-

Directors. Written or printed notice stating the place, day and hour of such special meeting

and the purpose or purposes for which the meeting is called shall be delivered to each

Member not less than three (3) nor more than twenty-one (21) days before the date of such

meeting.

(e) For the purpose of determining the Members entitled to notice of a meeting and to vote

at any meeting, the membership of the Council shall be determined at the close of business

on the twenty-fifth (25th) day preceding such meeting.

Section 3.5 Board of Directors. The first elected Board of Directors shall consist

of five (5) persons who are Members of the Council, spouses of Members, or in the event

that a Residence Unit is owned by a corporation or other entity," an officer, director, partner

fiduciary or beneficiary of such entity which owns the Residence Unit; provided, however,

Directors elected by the Developer need not be Members of the Council and need not reside

in a Residence Unit. The Directors shall be elected by the Members at the first meeting of

the Council and at each annual meeting thereafter. At the ,initial meeting of the Council,

three (3) Directors shall be elected for a term of two (2) years and two (2) Directors shall be

elected for a term of one (1) year. Thereafter, at the annual meeting of the Council, the

Members shall elect either three (3) or two (2) Directors, as the case may be, each to serve

for a term of two years, in order to fill the positions of the Directors whose terms have

expired at the time of the annual meeting. The candidates receiving the highest number of

votes up to the number of Directors of the Board to be elected shall be deemed elected. All

votes shall be cast by written ballot. Members shall not vote cumulatively for the election of

Directors. The presence of a majority of Directors at a meeting of Directors shall constitute

a quorum for the transaction of business. The action of a majority of Directors present at a

meeting at which there is a quorum shall be the act of the Board. The annual meeting of the

Board shall be held each year immediately following the annual meeting of the Council, at

the place of such annual meeting, for the election of officers and the consideration of any

other business that may properly be brought before such meeting. Regular meetings of the

Board of Directors shall be held at such times and places as the Board of Directors shall

determine. Special meetings of Board of Directors shall be held at any time upon the call of

the President or upon call by two (2) Directors. Notice of such special meeting shall be in

writing.

The Members of the Board (other than Members of the first elected Board) shall

serve for a term of two (2) years commencing at the time of their election until their death,

resignation, removal or until they are no longer Members of the Council, whichever is

earlier. Any member of the Board may be removed from membership on the Board, with or

without cause, by the affirmative vote of two-thirds of the votes represented at a meeting of

the Council called to consider such action.

-10-

Section 3.6 Actions without Meetings. Any action required by this Declaration or

by law to be taken at a meeting of the Councilor at a meeting of the Board may be taken

without a meeting if a consent in writing setting forth the action so taken, shall be signed by

all of the Members entitled to vote with respect to the subject matter thereof or signed by all

of the members of the Board, as the case may be. Such consent shall have the same force

and effect as a unanimous vote at a meeting.

Section 3.7 Officers. The Officers of the Council shall be elected by the Board of

Directors and shall consist of a President, a Vice-President, a Secretary and a Treasurer and

such other Vice- Presidents, Assistant Secretaries, and Assistant Treasurers as may be

convenient or necessary in the judgment of the Board for the administration and operation

of the Condominium. The Officers shall be elected from among the members of the Board

of Directors.

Section 3.8 Administration of the Condominium. The Council, acting through its

Board of Directors, its Officers or other duly authorized management representatives, shall

manage the' business and affairs of the Condominium and shall, without limitation, have the

powers of collection and enforcement set forth herein; for the benefit of all of the Owners in

the Condominium shall provide, perform, cause to be performed, maintained, acquired,

contracted and paid for out of the Common Expense Fund, the following:

(a) Utility services used in or for the Common Elements and. if not separately metered or

charged, utility services used in or for the Residence Units. Telephone service and any

utility services separately metered or charged shall be paid for by the Owner of the

Residence Unit served by such utility services.

(b) The insurance required by Section 5.1 hereof and such other policies of casualty,

liability and/or other insurance covering persons, property and risks as are in the best

interest of the Condominium.

(c) The services of a manager and such other persons as the Board shall from time to

time determine are necessary or proper to the daily management, operation and maintenance

of the Condominium.

(d) All supplies, tools and equipment reasonably required for use in the management,

operation, maintenance, cleaning and enjoyment of the-Condominium.

(e) The cleaning, maintenance, repairing, reconstruction and replacement of the

Common Elements as the Board shall determine is necessary.

(f) The services of gardeners, parking attendants, doormen, security guards, valets and

such other persons to the extent necessary for the operation of the Condominium in the

manner desired by the Members of the Council.

(g) The removal of all trash, garbage and rubbish from the central garbage receptacle or

receptacles of the Buildings; including the employment of the services of a garbage

collection company or agency, public or private.

-11-

(h) Costs of bookkeeping of the accounts of the Council and the annual audit provided

for herein; legal and accounting services and fees of the Council; premiums of fidelity

bonds; taxes or assessments of whatever type assessed or imposed against any of the

Common Elements.

The Board shall not, without the prior authorization of the Council at a meeting of

the Council, contract for or pay for out of the Common Expense Fund anyone (1) item of

capital addition or improvement (other than replacement of existing -Common Elements) at

a cost in excess of Five Thousand and No/100 Dollars ($5,000.00). Nothing herein shall

authorize the Board to furnish to any person services primarily for the benefit or

convenience of any Owner or Owners or any occupant or occupants of any Residence Unit

other than services customarily rendered to all Owners and occupants of Residence Units.

The Board shall have the exclusive right and obligation to contract for all goods, services

and insurance in connection with the administration of the Condominium, payment for

which is to be made from the Common Expense Fund.

The use of certain premises on the ground floor and mezzanine has not been

designated on Exhibit "C" attached hereto and made a part hereof. Such premises may be

used for such purposes as the Board may from time to time deem appropriate.

Notwithstanding anything contained herein to the contrary, the Board may enter into and

renew lease agreements for the use of such premises on such terms and conditions as the

Board may deem appropriate, and all rental and other income received therefrom shall be

deposited in the Common Expense Fund for use in the administration and operation of the

Condominium.

Section 3.9 Accounting and Audit. The Board of Directors shall keep or cause to be

kept detailed books of account of the receipts and expenditures affecting the Condominium

and its administration and specifying the maintenance and repair expenses of the Common

Elements and any other expenses incurred by or on behalf of the Condominium or the

Council. Both the books of accounts and all vouchers supporting the entries made therein

shall be available for examination at the office of the Council by all Owners and

Mortgagees at convenient hours on working days and the Board of Directors shall cause to

be established and announced for general knowledge the days and hours within which such

books shall be available for inspection. All such books and records shall be kept in

accordance with accepted accounting procedures, consistently applied, and shall be audited

at least once a year by an outside auditor pursuant to the terms and provisions of the By-

Laws or the Council. The fiscal year of the Council shall be the calendar year unless

another period is established by an amendment of the By-Laws.

Section 3.10 Right of Entry. The Council, or its duly authorized representatives, shall

have the right and authority to enter any Residence Unit for the purposes of:

(a) Making repairs therein.

-12-

(b) Performing necessary maintenance or repairs to the Common Elements, for which

the Council is responsible.

(c) Abating any nuisance or any dangerous, unauthorized, prohibited or unlawful

activity being conducted or maintained in such Residence Unit.

(d) Protecting the property rights and welfare of other Owners.

(e) Enforcing the provisions of this Declaration of Condominium, the By-Laws or the

Rules and Regulations promulgated thereunder. Except in the event of an emergency, such

right of entry shall be exercised only in the presence of the Owner or other occupant of the

Residence Unit which is entered. In all events, such right of entry shall be exercised in such

manner as to avoid any unreasonable or unnecessary interference with the possession, use

or enjoyment of the Residence Unit by the Owner or occupant thereof and shall, whenever

possible, be preceded by reasonable notice to the Owner or occupant thereof. In the event

that any damage is caused to the property of the Owner in connection with the exercise of

any such right of entry such damage shall be repaired at the expense of the Council and the

Board is authorized to expend Common Expense Funds therefor.

Section 3.11 Notices. Any notice permitted or required lo be given to a member of the

Board or to an Owner may be delivered personally, by mail or by placing such notice in the

mail distribution facilities of each Owner if such facilities are present in the Buildings. If

delivery is made by mail, it shall be deemed to have been delivered seventy-two {72} hours

after deposit in the U. S. Mail, postage prepaid, addressed to an Owner at his Residence

Unit or to such other address as the Owner may have given in writing to the Secretary of the

Council for the purpose of service of notices. Any address for purposes of notice .may be

changed from time lo time by notice in writing to the Secretary.

ARTICLE IV

COMMON EXPENSE FUND; ASSESSMENTS; COLLECTION

Section 4.1 Common Expense Charges. All Owners (including the Developer) are

bound to contribute, in proportion to their Percentage Ownership Interests to the Common

Expense Fund as a Common Expense Charge the expenses of administration of the

Condominium Regime and the administration, maintenance and repairs of the Common

Elements and other expenses provided by the terms hereof to be paid by the Councilor those

expenses agreed upon to be assumed by the Council pursuant to this Declaration, its By-

Laws and Rules and Regulations. No Owner shall be exempt from the obligation to make

such contribution to the Common Expense Fund by waiver of the use of enjoyment of the

Common Elements either general or limited, or by abandonment of the Residence Unit

belonging to him or under any other circumstances.

Section 4.2 Budgets, Establishment of Common Expense Charge and Special

Assessments. Until the commencement of the first full fiscal year after the first

meeting of the Council is held, the Developer

-13-

shall have the right and obligation to establish the annual budgets for each fiscal year

projecting all expenses for the forthcoming year which may be required for the proper

operation, management and maintenance of the Condominium Regime, including a

reasonable allowance for contingencies and reserves for repairs to or maintenance or re-

placement of Common Elements.

Commencing with the first full fiscal year after the first meeting of the Council is

held, the Board of Directors of the Council shall establish an annual budget in advance for

each calendar year and such budget shall project all expenses for the forthcoming year

which may be required for the proper operation, management and maintenance of the

Condominium, including a reasonable allowance for contingencies and reserves for repairs

to or maintenance or replacement of Common Elements. Such allowance for such

contingencies and reserves shall be payable in regular installments rather than by Special

Assessment. The Common Expense Charge for such year shall be established by the

adoption of such annual budget by the Board of Directors. Copies of each such budget shall

be delivered to each Owner by such reasonable means as the Board of Directors may

provide. In the event that the Board of Directors at any time determines that the Common

Expense Charges so levied are or may prove to be insufficient to pay the costs of operation

and management of the Condominium for such fiscal year or in the event of casually losses,

condemnation losses or other events (including non-payment of Common Expense Charges

by some Owners) which require additional funds be supplied for preservation and operation

of the Condominium, the Board of Directors shall have the authority at any time or from

time to time to levy such Special Assessment as it shall deem necessary for that purpose.

Such Special Assessment shall not be levied, however, without the prior approval of

Owners having at least a majority of the votes in the Council, unless a greater number of

votes is required by law.

The failure or delay of the Board to prepare any annual budget or to deliver copies

of such budgets to each Owner shall not constitute a waiver or release in any manner of any

Owner's obligation to pay Common Expense Charges whenever the same shall be

determined, and in the event of any delay or failure to establish any annual budget each

Owner shall continue to pay the Common Expense Charge, monthly, at the rate established

for the previous period until a new annual budget is established.

Section 4.3 Payment of Common Expense Charges and Special Assessments.

Common Expense Charges shall be due and payable monthly in advance. Special

Assessments shall be payable on or before ten (10) days after Owners are invoiced therefor.

Payment of Common Expense Charges and Special Assessments shall be in default if such

Common Expense Charges or Special Assessments, or any part thereof, are not paid to the

Council on or before the due date for such payment. Common Expense Charges and

Special Assessments in default shall bear interest at a rate of ten percent (10%) per annum

from the date of delinquency until paid. Each Owner (whether one or more persons) shall

be personally liable for the payment of all Common Expense

-14-

Charges and Special Assessments which may be levied against such Owner and his

Residence Unit pursuant to the provisions hereof.

Section 4.4 Enforcement. In order to secure the payment of the Common

Expense Charges and Special Assessments levied hereunder, a vendor's lien to the extent

permitted by law shall be and is hereby reserved in and to each Residence Unit and

assigned to the Council, without recourse, which lien shall be enforceable through

appropriate judicial proceedings by the Council or any Owner on behalf of the Council.

Said lien shall be deemed subordinate and inferior to the lien or liens of any Mortgagee

which may have hereto or may hereafter lend money in good faith for the purchase or

improvement of any Residence Unit. The collection of such Common Expense Charges

and/or Special Assessments may, in addition to any other applicable method at law or in

equity, be enforced by suit for a money judgment or collected out of the sale proceeds of

such Residence Unit in accordance with the provisions of Section 18 of the Texas

Condominium Act, and in any such event the expenses incurred in collecting such

delinquent assessment, including interest, costs, and attorney's fees, shall be chargeable to

and a personal obligation of such defaulting Owner. A notice of unpaid Common

Expense Charges and/or Special Assessments may be recorded in the Condominium

Records of Dallas County, Texas. Any Mortgagee who obtains title to a Residence Unit

pursuant to the remedies provided in a Mortgage or foreclosure of a Mortgage shall not

be liable for such Residence Unit's unpaid Common Expense Charges and/or Special

Assessments which have been accrued prior to the date that the Mortgagee acquires title

to such Residence Unit. An Owner in default in the payment of the Common Expense

Charge or any Special Assessment shall not be entitled to vote at any meeting of the

Council so long as such default exists.

Section 4.5 Common Expense Fund. The Common Expense Charges collected shall

be paid into the Common Expense Fund to be held and used for the benefit, directly or

indirectly, of the Condominium; and such Common Expense Fund may be expended by

the Board for the purposes set forth herein including, without limitation, providing for the

enforcement of the provisions of this instrument, the By-Laws of the Council and Rules

and Regulations promulgated hereunder; for the maintenance, operation, repair, benefit

and welfare of the Common Elements, and generally for doing those things necessary or

desirable in the opinion of the Board to maintain or improve the Condominium. The use

of the Common Expense Fund for any of these purposes, except as provided herein, is

permissive and not mandatory, and the decision of the Board with respect thereto shall be

final, so long as made in good faith.

-15-

ARTICLE V

INSURANCE

Section 5.1 General Provisions. The Board of Directors of the Council shall have

authority to and shall obtain insurance for the Condominium as follows:

(a) Insurance on the Buildings, including the Residence Units and the Common

Elements, against loss or damage by fire and loss or damage by all risks now or hereafter

embraced by standard extended coverage policies in use of the State of Texas (with

vandalism and malicious mischief endorsements and with appropriate endorsement to cover

the unfinished interior walls of the Residence Units), in amounts sufficient to prevent the

Council or the Owners from becoming a co-insurer within the terms of the applicable

policies, but in any event in an amount not less than the full insurable replacement cost

thereof. The "full insurable replacement cost" of the Buildings, including the Residence

Units and the Common Elements, shall be determined from time to time, but not less often

than once in a twelve-month period, by the Board and the Board shall have the "authority to

obtain and pay for an appraisal by a person or organization selected by the Board in making

such determination. The cost of any and all such appraisals shall be borne by the Common

Expense Fund.

(b) Insurance on the Buildings against all loss or damage from explosion of boilers,

heating apparatus, pressure vessels and pressure pipes installed in, on or about said

Buildings, without co-insurance clause, so long as available, and insurance against damage

to boilers, machinery, air conditioning and other equipment, each in such amount as the

Board may deem desirable.

(c) Comprehensive public liability and property damage insurance against claims for

personal injury or death or property damage suffered by the public or any Owner, the

family, agent, employee or invitee of any Owner, occurring 1n, on or about the Common

Elements or upon, in or about the private driveways, roadways, walkways, and

passageways, on or adjoining the Condominium (including without limitation, garage

keepers legal and extra legal liability insurance), which public liability and property damage

insurance shall afford protection to such limits as the Board shall deem desirable. Such

liability and property damage insurance policy shall contain a cross-liability endorsement

wherein the rights of named insureds under the policy or policies shall not prejudice his, her

or their action or actions against another named insured.

(d) Such workman's compensation insurance as may be necessary to comply with

applicable laws.

(e) Employer's liability insurance in such amount as the Board may deem desirable.

(f) Fidelity bonds indemnifying the Council, the Board and the Owners from loss of

funds resulting from fraudulent or dishonest acts of any employee of the Councilor of any

other person

-16-

handling the funds of the Council (including volunteers. with an appropriate endorsement if

required) in an amount equal to one and one-half times the estimated annual expenses and

reserves of the Council. or such greater amount as the Board may deem desirable.

(g) Such other insurance in such reasonable amounts as the Board shall deem desirable.

The premiums for all insurance acquired on behalf of the Council or the Owners

pursuant to the provisions hereof shall be borne by the Common Expense Fund.

All insurance provided for in this Section shall be effected under valid and

enforceable policies issued by insurers of recognized responsibility authorized to do

business in the State of Texas. All policies of insurance of the character described in

Subsections (a), (b), and (c) of this Section 5.1 shall name as insureds the Developer, the

Council and each Owner in the Percentage Ownership Interest established in Exhibit "D" to

this Declaration; shall contain standard mortgagee clause endorsements in favor of the

Mortgagee or Mortgagees of each Residence Unit, if any, as their respective interests may

appear; shall be without contribution with regard to any other such policies of insurance

carried individually by any Owner, whether such other insurance covers the Residence Unit

owned by such Owner and/or the additions and improvements made by such Owner to his

respective unit; shall provide that such policy shall not be terminated for non-payment of

premiums or for any other cause without at least thirty (30) days prior written notice to the

Council and at least ten (10) days prior written notice to the Mortgagee of each Residence

Unit. If possible, the insurance carriers or agents shall allocate that portion of the total

insurance premium attributable to each Residence Unit. In addition, if possible, all policies

of insurance of the character described in Subsection (a) of this Section 5.1 shall contain an

endorsement extending coverage to include the payment of Common Expense Charges

with respect to Residence Units damaged during the period of reconstruction thereof.

All insurance provided for in this Section shall provide that adjustment of loss shall

be made by the Board and that the net proceeds therefrom shall be payable to the Council,

held in a separate account and distributed to the Council, the Owners and their Mortgagees,

as their respective interests may appear; provided, however, whenever repair or rebuilding

of the Condominium shall be required as provided in Section 6.1 of this Declaration, the

net insurance proceeds received by the Council as a result of any such loss shall be

deposited in a bank as provided in Section 6.2 of this Declaration for application to such

repair or rebuilding.

Each Owner shall be deemed to appoint the Board as his true and lawful attorney-in-

fact to act in connection with all matters concerning the procurement and maintenance of

all insurance provided for in this Section. Without limiting the generality of the foregoing,

the Board as said attorney shall have full power and authority to procure and maintain such

insurance, to collect and remit the premiums therefor,

-17-

to collect proceeds and, subject as aforesaid, to distribute the same to the Council, the

Owners and their Mortgagees, as their respective interests may appear, to execute releases

of liability and to execute all documents and to do all things on behalf of each Owner as

shall be necessary or convenient to the accomplishment of the foregoing, and any insurer

may deal exclusively with the Board in regard to such matters. The Board shall not be

responsible for the procurement or maintenance of any insurance covering the interior or

the contents of any Residence Unit, or covering the liability of any Owner for occurrences

therein not caused by or connected with the Council's operation, maintenance or use of the

Condominium.

Section 5.2 Individual Insurance. Each Owner may procure and maintain, at his

own cost and expense, insurance covering the interior and contents of his Residence Unit

including, but not limited to, any finishing materials applied or affixed to the interior

surfaces of perimeter walls, interior walls, floors or ceilings (such as, but without

limitation, paint, wallpaper, vinyl wall or floor coverings, and carpets), fixtures,

installations, additions, furniture, furnishings, and all appliances located therein (whether or

not "built in"). All policies of casualty insurance carried by each Owner shall be without

contribution with respect to the policies of casualty insurance obtained by the Council for

the benefit of all of the Owners as above provided.

In addition to the master policies which the Council shall carry, each Owner, at his

sole cost and expense, shall carry personal liability insurance covering damage to property

or injury to the person of others within the Condominium resulting from negligence of the

Owner or his agents, tenants, guests or invitees, in an amount of One Hundred Thousand

Dollars ($100,000.00) for each occurance or such other amount as the Board from time to

time may determine. Each Owner shall deliver to the Board a certificate evidencing such

insurance in the amount specified with an effective date not later than thirty (30) days after

the effective date of this provision, or the date said Owner takes title to his Residence Unit,

which certificate will further state that the said policy shall not be cancelled or reduced

without ten (10 days prior written notice to the Council.

ARTICLE VI

FIRE OR CASUALTY: REBUILDING

Section 6.1 Determination of Loss. In the event of a fire or other casualty causing

damage or destruction to the Buildings, the Board shall determine whether such loss

comprises the whole or more than two- thirds of the Buildings. Unless otherwise provided

by law, such determination shall be made by determining whether the cost of necessary

repair or reconstruction would exceed two-thirds of the cost of reconstructing the Buildings

as they existed prior to such fire or other casualty. In the event of fire or other casualty

which does not comprise more than two-thirds of the Buildings, unless otherwise

unanimously agreed to by the Owners, the Buildings shall be repaired and reconstructed

substantially in accordance with the original Plans and Specifications for the Buildings, in

accordance with the provisions hereof. In the event that fire or other casualty comprises the

whole or more

-18-

than two-thirds of the Buildings, unless otherwise unanimously agreed by the Owners, all

proceeds of insurance policies carried by the Council and all accrued and collected

Common Expense Charges shall be delivered to the Owners and their Mortgagees, as their

interests may appear, in proportion to the Percentage Ownership Interest of each Owner,

and the Condominium Regime established by this Declaration of Condominium shall

terminate. Upon such termination, the Residence Units and Common Elements shall be

deemed to be regrouped and merged into a single filial estate owned in undivided interest

by all Owners as tenants-in-common in the Percentage Ownership Interest previously

owned by each Owner in the Common Elements.

Section 6.2 Rebuilding. In the event that it is determined that the Buildings shall be

repaired and reconstructed, then the net proceeds of insurance policies with respect to such

fire or casualty, carried by the Council, shall be deposited in a bank selected by the Board,

as Trustee, insured by the Federal Deposit Insurance Corporation (or its successors) and

located in Dallas County, Texas, to be held in trust for the benefit of the Owners and their

Mortgagees as their respective interests may appear. The Board shall thereupon contract to

repair or rebuild the damaged portions of all Residence Units, Buildings, and Common

Elements in accordance with the original Plans and Specifications therefor and the funds

held in trust in such bank shall be used for this purpose and disbursed by the Board in

accordance with the terms of the contract of repair and rebuilding.

In the event that such insurance proceeds are insufficient to provide for such repair,

restoration or rebuilding, the building costs in excess of such insurance proceeds shall be

assessed against all of the Owners, in proportion to the Percentage Ownership Interest of

each Owner, as set forth in this Declaration. Such Special Assessments shall not require the

consent of the Members of the Council notwithstanding the provisions of Section 4.2

hereof. If any Owner shall fail to pay such Special Assessments when due, the Board ~ay

make up the deficiency by payment from the Common Expense Fund, which payment shall

in no way release the Owner who has failed to make payment of such Special Assessment

from liability therefor. Such assessments shall be enforceable as provided for other Special

Assessments herein. The provisions of this Section may be changed only by unanimous

resolution of the Owners, adopted subsequent to the date on which fire or casualty loss

occurs.

Section 6.3 Repair of Residence Units. Each Owner shall be responsible for the

reconstruction, repair and replacement of that portion of the interior and contents of his

Residence Unit for which such Owner is required to procure and maintain insurance

pursuant to Section 5.2 regardless of the existence or adequacy of such insurance.

Section 6.4 Indemnity of Council. Each Owner shall be responsible for the costs not

otherwise covered by insurance carried by the Council caused by his negligence or misuse

or by the negligence or misuse of his immediate family, and his agents or employees in the

course of their duties, and shall, to the extent not covered by insurance collected by the

Council, indemnify the Council and all Owners against any such costs of reconstruction,

repair and replacement of any portion of the Buildings.

-19-

ARTICLE VII

EMINENT DOMAIN

Section 7.1 General Provisions. If all or any part of the Condominium is taken or

threatened to be taken by eminent domain or by power in the nature of eminent domain

(whether permanent or temporary) the Board and each Owner shall be entitled to participate

in proceedings incident thereto at their respective expense. The Board shall give notice of

the existence of such proceeding to all Owners and to all Mortgagees known to the Board to

have an interest in any Residence Unit. The expense of participation in such proceedings by

the Board shall be borne by the Common Expense Fund. The Board is specifically

authorized to obtain and pay for such assistance from attorneys, appraisers, architects,

engineers, expert witnesses and other persons as the Board in its discretion deems necessary

or advisable to aid or advise it in matters relating to such proceedings. All damages or

awards for any such taking shall be deposited with the Board, acting as Trustee, and such

damages or awards shall be applied or paid as provided herein.

Section 7.2 Taking of Common Elements. In the event that an action in eminent

domain is brought to condemn a portion of the Common Elements (together with or apart

from any Residence Unit), the Board, in addition to the general powers set out herein, shall

have the sole authority to determine whether to defend or resist any such proceeding, to

make any settlement with respect thereto; or to convey such property to the condemning

authority in lieu or such condemnation proceeding. With respect to any such taking of

Common Elements only, all damages and awards shall be determined for such taking as a

whole and not for each Owner's interest therein. After the damages or awards for such

taking are determined, such damages or awards shall be paid to each Owner in proportion

to his Percentage Ownership Interest in the Common Elements. The Board may, if it deems

advisable, call a meeting of the Owners, at which meeting the Owners, by a majority vote,

shall decide whether to replace or restore as far as possible the Common Elements so taken

or damaged. In the event it is determined that such Common Elements should be replaced

or restored by obtaining other land or building additional structures, this Declaration and

the Exhibits attached hereto shall be duly amended by instrument executed by the Board of

Directors on behalf of the Owners.

Section 7.3 Taking of Residence Units. In the event that such eminent domain

proceeding results in the taking of or damage to one or more, but less than two-thirds of the

total number of Residence Units, then the damages and awards for such taking shall be

determined for each Residence Unit and the following shall apply:

(a) The Board shall determine which of the Residence Units damaged by such taking

may be made tenantable for the purposes set forth in this Declaration, taking into account

the nature of this Condominium and the reduced size of each Residence Unit so damaged.

-20-

(b) The Board shall determine whether it is reasonably practicable to operate the

remaining Residence Units of the Condominium including those damaged Residence Units

which may be made tenantable as a Condominium in the manner provided in this

Declaration.

(c) In the event that the Board determines that it is not reasonably practicable to operate

the undamaged Residence Units and the damaged Residence. Units which can be made

tenantable as a Condominium, then the Condominium shall be deemed to be regrouped and

merged into a single filial estate owned jointly in undivided interest by all Owners, as

tenants-in-common, in the Percentage Ownership Interest previously owned by each

Owner in the Common Elements.

(d) In the event that the Board determines that it will be reasonably practicable to

operate the undamaged Residence Units and the damaged Residence Units which can be

made tenantable as a Condominium, then the damages and awards made with respect to

each Residence Unit which has been determined to be capable of being made tenantable

shall be applied to repair and reconstruct such Residence Unit so that it is made tenantable:

If the cost of such work exceeds the amount of the award, the additional funds required

shall be assessed against the Owners of those Residence Units which are being repaired or

reconstructed so as to be made tenantable. With respect to those Residence Units which

may not be made tenantable, the award made with respect to such Residence Units shall be

paid to the accounts of the Owners of such Residence Units, and the remaining portion of

such Residence Units, if any, shall become a part of the Common Elements and repair and

use of such Residence Units shall be determined by the Board. Upon the payment of such

award for the account of such Owner as provided herein, such Residence Unit shall no

longer .be a part of the Condominium and the Percentage Ownership Interest in the

Common Elements appurtenant to each remaining Residence Unit which shall continue as

part of the Condominium shall be equitably adjusted to distribute the ownership of the

undivided interests in the Common Elements among the reduced number of Owners and

this Declaration and the Exhibits attached hereto shall be duly amended by instrument

executed by the Board of Directors on behalf of the Owners.

If the entire Condominium is taken, or two-thirds or more of the Residence Units are

taken or damaged by such taking, all damages and awards shall be paid to the accounts of

the Owners of Residence Units, as provided herein, in proportion to their Percentage

Ownership Interest in the Common Elements and this Condominium Regime shall

terminate upon such payment. Upon such termination, the Residence Units and Common

Elements shall be deemed to be regrouped and merged into a single filial estate owned in

undivided interest by all Owners as tenants-in-common in the Percentage Ownership

Interest previously owned by each Owner in the Common Elements.

-21-

Section 7.4 Payment of Awards and Damages. Any damages or awards provided in

this Article to be paid to or for the account of any Owner by the Board, acting as Trustee,

shall be applied first to the payment of any taxes or assessments by governmental authorities

past due and unpaid with respect to that Residence Unit; secondly, to amounts due under

duly recorded Mortgages in order of their priority; thirdly, to the payment of any Common

Expense Charges or Special Assessments charged to or made against the Residence Unit and

unpaid; and finally to the Owner of such Residence Unit.

ARTICLE VIII

TRANSFER OF UNIT; RIGHT OF FIRST REFUSAL

Section 8.1 Right of First Refusal. Except as provided below, should the Owner of

any Residence Unit be desirous of leasing or selling such Residence Unit, the Council is

hereby given and granted the right of first refusal to lease or purchase such Residence Unit,

as the case may be, on the terms and conditions herein stated, and no Owner of a Residence

Unit shall lease or sell the same to any party without first giving the Council notice in

writing of such proposed lease or sale as herein provided and giving the Council the

opportunity to determine whether it will exercise the right of first refusal to lease or purchase

said Residence Unit on the same terms and conditions as those contained in any bona fide

offer which the Owner of such Residence Unit may have received for the lease or purchase

of his Residence Unit. Any leasing or sale of a Residence Unit without compliance with the

terms hereof shall be void and of no force or effect and shall confer no title or interest in a

Residence Unit to the purported purchaser or lessee.

Section 8.2 Notice and Exercise of Right of First Refusal. Whenever the Owner

of any Residence Unit has received a bona fide offer to lease or purchase his Residence Unit

and is desirous of 3~c~pting such bona fide offer, the Owner of such Residence Unit shall

give the Board written notice of his desire to accept such offer for the lease or purchase of

his Residence Unit, stating the name, address, business, occupation or employment of the

offeror, and enclosing an executed copy of a bona fide offer for said lease or purchase. If the

Council desires to exercise its option to lease or purchase said Residence Unit on the same

terms and conditions as are contained in said offer, then the Board shall notify the Owner of

said Residence Unit desiring to lease or sell the same of the exercise of its option, such

notice to be in writing and delivered by registered or certified mail to said Owner within

fourteen (14) days from the date of receipt by the Board of' the Owner's notice to said Board

as hereinabove required, or written notice may be personally delivered to said Owner within

said period. If the Board has elected to lease or purchase said Residence Unit, then, within a

reasonable time after the giving of notice to the Owner of such Residence Unit of its election

to lease or purchase said Unit, the Board shall execute a lease or

-22-

contract to purchase, and shall consummate such contract to purchase all on the same terms

and conditions as those contained in the said bona fide offer. When any Owner of a Residence

Unit has notified the Council as above provided of his desire to lease or sell his Residence

Unit, such Owner shall be free to consummate such lease or sale of his Residence Unit unless,

within fourteen (14) days after receipt of Owner's notice by the Board, the Board has notified

said Owner of its intention to exercise its right of first refusal as set out herein. In the event

that the Council elects not to exercise its right of first refusal, the Owner of said Residence

Unit shall be free to lease or sell said Residence Unit only to the party and only upon the

terms described in the required notice. In the event that the proposed transaction with regard

to which the Board has declined to exercise its right of first refusal is not consummated within

forty-five (45) days of the date of the giving of the required notice, the Owner of each

Residence Unit must again give notice to the Council and the Council shall again have a right

of first refusal as herein provided. The right of first refusal to lease or purchase herein set

forth shall be a continuing right and the non-exercise of the right in any instance shall not be

deemed a waiver thereof in any other instance or against any other Owner or lessee.

Section 8.3 Purchase by Nominee of Council. If the Council shall so elect, it may

cause its right of first refusal to lease or purchase any Residence Unit to be exercised in its

name for itself or for a party approved by the Board, or the Board may elect to cause said

Residence Unit to be leased or purchased directly in the name of the party approved by it,

which party shall enter into a lease or contract to purchase and consummate such contract to

purchase in the same manner as would the Board upon its exercise of said right of first refusal

to lease or purchase the said Residence Unit.

Section 8.4 Terms of Lease. Notwithstanding that the Board may have declined to

exercise its right of first refusal with respect to any leasing of any Residence Unit, no

Residence Unit shall be leased unless the terms and provisions of such lease specifically

provide that such Residence Unit may not be sublet to or be occupied by persons other than

those named in the required notice provided for hereinabove without the prior written

approval of the Board being first had and obtained, and any lease shall provide that the lessee

shall comply with and abide by all of the restrictions pertaining to the use of Residence Units

and the Common Elements set forth in this Declaration, the By-Laws, Rules and Regulations

promulgated hereunder and the laws of the State of Texas now or hereafter established

governing the use of such Residence Units and the Common Elements. Should any lessee or

occupant not comply with such lease provision, then the Board shall be given the right to

cancel and terminate such lease, without any obligation or liability imposed upon the Board or

Council, and for such purpose, the Board shall be regarded as the Owner's agent fully

authorized to take such steps as may necessary to affect the cancellation and termination of

such lease.

-23-

Section 8.5 Exceptions to Right of First Refusal. The right of first refusal herein

granted to the Council shall not apply to or be operative with respect to (i) transfers of

ownership of any Residence Unit by one spouse to or for the benefit of the other spouse

and/or member of the Owner's immediate family (which term includes descendants,

parents, and siblings of the Owner and the spouses thereof); (ii) by one Owner to another

Owner; (1i1) 1n the event of transfers provided for in Section 8.3 hereof; (iv) any

Mortgagee who obtains title to a Residence Unit pursuant to the remedies provided in a

Mortgage, or foreclosure of a Mortgage, or deed (or assignment) in lieu of foreclosure; (v)

the sale or leasing of a Residence Unit by the Council after the Council has acquired such

Residence Unit or a leasehold estate therein pursuant to the terms of this Article; or (vi) to

any conveyance made by the Owner of a Residence Unit to a bona fide Mortgagee in lieu

of such foreclosure, provided that the title of a purchaser from such Mortgagee or

purchaser obtained at any foreclosure, or judicial sale shall thereafter be subject to the

terms and provisions of this Article with respect to any further lease or sale of any such

Residence Unit; and (vii) notwithstanding any provision hereof to the contrary, the right of

first refusal granted to the Council herein shall not be applicable for the lease, sublease or

sale of any Residence Unit to 'or by the Developer.

Section 8.6 Application of Proceeds of Sale. Upon the sale or conveyance of a

Residence Unit by an Owner other than the Developer, the proceeds of such sale or

conveyance shall be applied as follows:

(a) First to assessments, liens and charges in favor of the state and any political

subdivision thereof for taxes past due and unpaid on the Residence Unit;

(b) Secondly, to amounts "due under duly recorded Mortgages in order of their priority;

(c) Thirdly, to the payment of all unpaid Common Expense Charges and/or Special

Assessments against the Residence Unit and the Owner thereof; and

(d) Fourthly, to the Owner of such Residence Unit.

If such unpaid Common Expense Charges and/or Special Assessments are not paid

or collected at the time of sale or conveyance of a Residence Unit, the grantee of such sale

or conveyance shall be jointly and severally liable with the selling Owner for all unpaid

Common Expense Charges and/or Special Assessments against the Residence Unit up to

the time or the grant or conveyance, without prejudice to the grantee's right to recover from

the selling Owner the amounts paid by the grantee therefor.

Section 8.7 Perpetuity Savings Clause. Unless sooner terminated by the

termination of this Declaration of Condominium, the terms and provisions of Sections 8.1

through 8.5 hereof, inclusive, shall remain in effect for the period of the lives of the now

living issue of James H. Coker and Thomas L. James, both of Dallas County, Texas,

whichever of said issue shall live longer, plus twenty-one (21) years; from and after the

date of execution of this Declaration or Condominium.

-24-

ARTICLE IX

AMENDMENT OF DECLARATION, BY-LAWS

AND RULES AND REGULATIONS

Section 9.1 Amendment of Declaration. Except as otherwise provided by law, the

provisions of this Declaration may be amended only by an instrument in writing signed and

acknowledged by Members (including the Developer) having not less than seventy-five

percent (751) of the votes in the Council entitled to vote on such amendment; provided,

however, the Condominium Regime established hereby for the Condominium shall not be

vacated, waived, revoked, abandoned or terminated, nor shall the Percentage Ownership

Interest assigned to nor the dimensions of any Residence Unit be changed, nor shall the

Common Elements be abandoned, partitioned, subdivided, encumbered, sold or transferred,

unless seventy-five percent (751) of the Owners (other than the Developer) of or the first

Mortgagees (based upon one vote for each first Mortgage) of all Mortgages covering

Residence Units agree to such vacation, waiver, revocation, abandonment, termination,

partition, subdivision, encumbrance, sale or transfer by an instrument in writing signed and

acknowledged by such Owners or such Mortgagees. Any such instrument shall be duly

recorded in the Condominium Records of Dallas County, Texas. Notwithstanding the

generality of the foregoing, the Developer may amend this Declaration in order to: (i)

correct surveyor other errors made herein prior to the first annual meeting of the Council;

(1i) change the Percentage Ownership Interest assigned to and the dimensions of Residence

Units owned by the Developer so long as such changes do not affect the Percentage

Ownership Interest assigned to other Residence Units in the Condominium not owned by the

Developer; and (iii) conform with the requirements of the Federal Home Loan Mortgage

Corporation, the Federal National Mortgage Assoc1~tion or any similar duly constituted

governmental authority with respect to condominium documentation, each by an instrument

in writing signed by the Developer only, acknowledged, and duly recorded in the

Condominium Records of Dallas County, Texas.

Section 9.2 Amendment of By-Laws. The By-Laws of the Council, adopted

pursuant to the provisions of this Declaration, may be amended from time to time by the

affirmative vote of the members having sixty percent (60%) of the number of votes entitled

to act on such matter at a meeting of the Council as provided herein.

ARTICLE X

MISCELLANEOUS

Section 10.1 Estoppel Certificate. Any Mortgagee or any prospective purchaser of a

Residence Unit shall be entitled upon written request therefor to a statement from the Board

setting forth the amount of any unpaid Common Expense Charges and/or Special

Assessments not paid by the Owner of a Residence Unit in which such

-25-

prospective purchaser or Mortgagee has an interest. Any prospective purchaser shall not be

liable for nor shall the Residence Unit conveyed be subject to the lien provided for in this

Declaration of Condominium for any unpaid Common Expense Charges and/or Special

Assessments made by the Board against the particular Residence Unit involved in excess of

the amount set forth in such statement. Any such purchaser shall, however. be liable for any

Common Expense Charges and/or Special Assessments becoming due after the date of any

such statement.

Section 10.2 No Partition. The Common Elements shall remain undivided and shall

not be subject to an action for partition or division of the co-ownership thereof so long as

suitable for a Condominium Regime, and, in any event, all Mortgages secured by an interest

in the Common Elements must be paid in full prior to bringing any action for partition or

the consent of all holders of such Mort- gages must be obtained; provided, however, that if

any Residence Unit shall be owned by two (2) or more Owners as tenants-in-common or as

joint tenants, nothing herein contained shall be deemed to prevent a judicial partition of

such Residence Unit as between such co-tenants.

Section 10.3 Mortgages.

(a) Any Owner who mortgages his interest in a Residence Unit shall, within ten (10)

days after the execution of any Mortgage, give notice to the Council in writing of the name

and address of his Mortgagee and the amount secured by the Mortgage, and the Council

shall maintain such information in a book entitled "Mortgages of Residence Units". In

addition such Owner shall notify the Council in the same manner as to the release or

discharge of any Mortgage.

(b) The Council shall, at 'the request of any Mortgagee, report to such Mortgagee any

unpaid Common Expense Charges and/or Special Assessments due from the Owner of such

Residence Unit.

(c) The Council shall, at the request of any Mortgagee, notify such Mortgagee of any

default by any Owner in the performance of such Owner's obligations hereunder which is

not cured within sixty (60) days from the date of such default.

(d) The Council shall notify the Federal Home Loan Mortgage Corporation (in care of its

servicing agent at the servicing agent's address furnished to the Council) of any loss to, or

taking of, the Common Elements, if such loss or taking exceeds $10,000.00, or if damage to

a Residence Unit covered by a Mortgage purchased in whole or in part by the Federal Home

Loan Mortgage Corporation exceeds $1,000.00.

Section 10.4 Enforcement. The Board or any Owner shall have the right to enforce,

by any proceedings at law or in equity, all terms and provisions hereof. Failure by the Board

or by any Owner to enforce any covenant or restriction herein contained shall in no event be

deemed to be a waiver of the right to enforce such covenant or restriction thereafter.

-26-

Section 10.5 Severability. The provisions hereof shall be deemed independent

and severable, and the invalidity or partial invalidity or unenforceability of any one

provision or portion thereof shall not affect the validity or enforceability of any other

provision hereof.

Section 10.6 Ratification. 3525, Ltd. hereby ratifies and confirms the Declaration

of Condominium, as amended and restated hereby.

IN WITNESS WHEREOF, 3525, Ltd. has caused this amendment and Restatement of

the 3525 Condominiums Declaration of Condominium to be executed this 30th day of

October, 1978.

3525, LTD., a Texas limited

partnership

By: Its general partner

Lexington Capital Group,

Inc., a Texas corporation

By: Kimball S. Watson

Vice President

STATE OF TEXAS

COUNTY OF DALLAS

BEFORE ME, a Notary Public, on this day personally appeared Kimball S.

Watson, Vice President of Lexington Capital Group, Inc., a Texas corporation, general

partner of 3525, Ltd., a Texas limited partnership, known to me to be the person and

officer whose name is subscribed to the foregoing instrument and acknowledged to me

that the same was the act of 3525, Ltd., a Texas limited partnership, and that he has

executed the same as the act of said limited partnership for the purposes and

consideration therein expressed, and in the capacity therein stated.

GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 30th day of October,

1978

Notary Public in and for

Dallas County, Texas

-27-

EXHIBIT "A" *

Description of Land by Metes and Bounds

EXHIBIT "B" *

Plot Plan - Plat Showing Location of the Building on the Land

EXHIBIT "C" *

Floorplans of Each Level of the Building

EXHIBIT "D"

Schedule of Percentage Ownership Interests

* Not reproduced due to the size of the documents. This information is available at the 3525

Condominiums Sales Office, 3525 Turtle Creek Boulevard, Dallas, Texas 75219.

-28-

EXHIBIT "D"

SCHEDULE OF PERCENTAGE OWNERSHIP INTERESTS

RESIDENCE

UNIT

NUMBER

PERCENTAGE

OWNERSHIP

INTEREST

RESIDENCE

UNIT

NUMBER

PERCENTAGE

OWNERSHIP

INTEREST

RESIDENCE

UNIT

NUMBER

PERCENTAGE

OWNERSHIP

INTEREST

2A

2B

2C

2D

2E

3A

3B

3C

3D

3E

4A

4B

4C

4D

4E

5A

5B

5C

5D

5E

6A

6B

6C

6D

6E

7A

7B

7C

7D

7E

8A

8B

8C

8D

8E

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

9A

9B

9C

9D

9E

10A

10B

10C

10D

10E

11A

11B

11C

11D

11E

12A

12B

12C

12D

12E

13A

13B

13C

13D

13E

14A

14B

14C

14D

14E

15A

15B

15C

15D

15E

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

16A

16B

16C

16D

16E

17A

17B

17C

17D

17E

18A

18B

18C

18D

18E

19A

19B

19C

19D

19E

20A

20B

20C

20D

20E

21A

21B

21C

21D

21E

22A 22B

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0249480

TOTAL PERCENTAGE OWNERSHIP INTEREST (ALL RESIDENCE UNITS): 1.0000000

PERCENTAGE OWNERSHIP INTERESTS ARE SHOWN AS THE

FRACTIONAL INTEREST OF THE WHOLE OF ONE (1.0000000>

SECOND AMENDMENT TO


OF


THE STATE OF TEXAS )

) KNOW ALL MEN BY THESE PRESENTS THAT

COUNTY OF DALLAS )

WHEREAS, on December 14, 1977, a Declaration of Condominium for The 3525

Condominiums was filed of record in Volume 78002, Page 0738 of the Condominium

Records of Dallas County, Texas; and

WHEREAS, on November 1, 1978 an Amendment and Restatement of The 3525

Condominiums Declaration of Condominium was filed of record in Volume 78212, at Page

0492, of the Condominium Records of Dallas County, Texas (the "Declaration"); and

WHEREAS, Section 9. of the Declaration provides in pertinent part that the

Declaration may be amended by an instrument in writing, signed and acknowledged by

Members (including the Developer) having not less than seventy-five percent (75%) of the

votes in the Council entitled to vote thereon: and

WHEREAS, in excess of seventy-five per cent (75%) of the votes in the Council

entitled to vote on an amendment, desire to amend certain insurance requirements in Section

5.2 of the Declaration as hereinafter provided:

NOW, THEREFORE, in consideration of the premises, the Declaration is hereby

amended as follows:

I

Section 5.2 of the Declaration is hereby deleted and in its place the following Section

5.2 shall be inserted:

Section 5.2. Individual Insurance. Each Owner may procure and

maintain, at his own cost and expense insurance covering the interior and contents of

his Residence Unit including but not limited to any

finishing materials applied or affixed to the interior surfaces of perimeter walls, interior

walls, floors or ceilings (such as, but without limitation, paint, wallpaper, vinyl wall or floor

coverings, and carpets), fixtures, installations, additions, furniture, furnishings, and all

appliances located therein (whether or not "built in"). All policies of casualty insurance

carried by each Owner shall be without contribution with respect to the policies of ca8ualty

insurance obtained by the Council for the benefit of all of the Owners as above provided

In addition to the master policies which the Council shall carry, each Owner, at his

sole cost and expense, shall carry personal liability insurance covering damage to property

or injury to the person of others within the Condominium resulting from negligence of the

Owner or his agents, tenants, guests or invitees, in an amount of One Hundred Thousand

Dollar ($100,000.00) for each occurrence or such other amount a. the Board from time to

time may determine. Each Owner shall deliver to the Board a certificate evidencing such

insurance in the amount 8pecified with an effective date not later than thirty (30) days after

the effective date of this provision, or the date said Owner takes title to his Residence Unit,

which certificate will further state that the said policy shall not be cancelled or reduced

without ten (10) days prior written notice to the Council

II.

The effective date of this amendment shall be the date on which it is filed in the

Condominium Records of Dallas County, Texas.

-2-

Council Members

and Residence

Unit Owner Name(s)

Residence

Unit No.

Percentage

Charles F. Smith

Howell Wynne

Villa D. Blakley

Theodore P. Beasley

Anne Reed Roath, Trustee

for Nancy Wynne

Gwen D. Sharp

Mrs. H. Freedman

Cora R. Wright

Josephine Herbert Chomat

Alfred Wood

Lillian B. Clark

A. G. Hill

Norman Alweis

DeLois Faulkner

Jeffrey Weiss

Lyda Hill

Mrs. D. W. Forbes

Jno. Pew

Virginia L. Nick

Woodcrest

Investment Inc.

VonTiesenhausen

M. L. Jenkins

DeLois Faulkner

Westport

Investment Inc.

Jimmy Dean Meat Co.

E. E. Fogelson

W. Donald Sally

Mrs. John Wood Timmins

Don Ingram

D.F. Fair

DeLois Faulkner

William Osborne

Cecil H. Greene

Mrs. W. E. Butler

Franklin B. Bartholow,

Executor of Meadows

Estate

Louise W. Kahn

Fred Jordon, M.D.

Sigmund Carl Mandell

Henry S. Miller, Jr. and

Vance Miller

Westport

Investment Inc.

Nancy Smith Chandler

E. E. Fogelson

10A

10C

10E

11A, 11B

11C

11D

11E

12A

12B, 12C

12E

13A

13B, 13C, 13D

13E

14A, 14B, 14C

14D, 14E

15A

15B, 15C

15E

16B, 16C

16D, 16E

17B

17C

17D

17E

21E

18B

18C

18D

18E

19A

19B

19C

19E

20A

20B

20D, 20E

21A

21B

21C

21D

21E

Penthouse A

Penthouse B

.01210599

.0058097

.0097055

.0121599, .0098078

.0058097

.0101535

.0097055

.0121599

.0098078, .0058097

.0097055

.0121599

.0098078, .0058097

& .0101535

.0097055

.0135089, .0098078,

.0058097, .0101535

& .0082398

.0121599

.0098078, .0058097

.0097055

.0098078, .0058097

.0101535, .0097055

.0178771

.0037595

.0121989

.0082398

.0121599

.0098078

.0058097

.0101535

.0097055

.0121599

.0098078

.0058097

.0097055

.0121599

.01037475

.0121989, .0097055

.0121599

.0098078

.0058097

.0101535

.0097055

.0249480

.0224985

TOTAL PERCENTAGE .8110321%

-4-

STATE OF TEXAS

COUNTY OF DALLAS

BEFORE ME, the undersigned authority, on this day personally appeared

, President of TEH 3525 CONDOMINIUMS COUNCIL OF CO-OWNERS, a Texas

corporation, known to me to be the person and officer whose name is subscribed to the foregoing

instrument and acknowledged to me that he executed the same for the purposes and consideration therein

expressed, and in the capacity therein stated as the free act and deed of said The 3525 Condominiums

Council of Co-Owners.

GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of ,

1982

[SEAL] Notary Public in and for


BEFORE ME, the undersigned authority, on this day personally appeared MRS. E. G. WADEL, Attorney-

in-Fact for SARAH B. LEHMBERG, W. L. BLODGETT, OLGA WILLIFORD, MARY OLIVE

GARDERE (MRS. GEORGE P.), JAY FREEMAN, LULA MAE SLAUGHTER, MRS. W. L. HALL,

HOLLAND McCOMBS, O. W. P~SH, TRUST OFFICER (NEMO S. WYNNE TRUST), REPUBLIC

BANK DALLAS N.A., RICHARD HOBSON, TRUST OFFICER (THOMAS J. MORONEY TRUST), E.

G. WADEL, MRS. PRENTICE F. BROWN, BERTHA ANLSCHLAGER, TRUSTEE FOR BERGFIELD

TRACTS, BASIL GEORGES, J.G. (JAVIER GARZA), MRS. D. W. FORBES, CHRISTINA S.

BRITTINGHAM, MRS. EARLE WYATT, WILLIAM OSBORNE, GRETA FLIPPEN ELLIS, CECIL H.

GREENE, ROSE P. DISIMONE, CHARLES F. SMITH, HOWELL WYNNE, VILLA D. BLAKLEY,

THEODORE P. BEASLEY, ANNE REED ROOTH, TRUSTEE FOR NANCY WYNNE, GWEN D.

SHARP, MRS. M. FREEDMAN, CORA R. WRIGHT, JOSEPHINE HERBERT CHOMAT, ALFRED

WOOD, LILLIAN B. CLARK, A. G. HILL, NORMAN ALWEIS, DELOIS FAULKNER, JEFFREY

WEISS, LYDA HILL, JNO. PEW, VIRGINIA L. NICK, WOODCREST INVESTMENT INC.,

VONTIESENHAUSEN, M. L. JENKINS, WESTPORT INVESTMENT INC., JIMMY DEAN MEAT

CO., E. E. FOGELSON, W. DONALD SALLY, MRS. JOHN WOOD TIMMINS, DON INGRAM, D.F.

FAIR, MRS. W. E. BUTLER, FRANKLIN B. BARTHOLOW, EXECUTOR OF MEADOWS ESTATE,

LOUISE W. KAHN, FRED JORDON, M.D., SIGMUND CARL MANDELL, HENRY S. MILLER, JR.,

VANCE MILLER, and NANCY SMITH CHANDLER, known to me to be the person whose name is

subscribed to the foregoing instrument and acknowledged to me that she executed

the same for the purposes and consideration therein expressed, and in the capacity therein stated as the free

act and deed of said above listed Unit Owners.

GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of ,

1982.

[SEAL] Notary Public in and for


-5-

ARTICLES OF INCORPORATION

OF

THE 3525 CONDOMINIUM COUNCIL OF CO-OWNERS

We, the undersigned, natural persons of the age of twenty-one (21) years or more, at least two (2)

of whom are citizens of the State of Texas, acting as incorporators of a corporation under the

Texas Non-Profit Corporation Act, do hereby adopt the following Articles of Incorporation for

such corporation:

ARTICLE I

The name of the corporation is:

THE 3525 CONDOMINIUM COUNCIL OF CO-OWNERS

ARTICLE II

The corporation is a non-profit corporation.

ARTICLE III

The period of its duration shall be perpetual.

ARTICLE IV

The purpose or purposes for which the corporation is organized are:

(1) To provide for the administration, management, maintenance, preservation and

control of the 3525 Condominiums, a Condominium project located in Dallas, Dallas County,

Texas established pursuant to the Texas Condominium Act (Texas Revised Civil Statutes Article

1301a).

(2) To exercise and perform all of the obligations and duties of the "Council of Co-

Owners" of such Condominium project, as that term is used in the Texas Condominium Act.

(3) To exercise all powers and perform all duties imposed upon this corporation in

accordance with the Declaration of Condominium of the 3525 Condominiums, as such Declaration

may hereafter be amended including, without limitation, to fix, levy, collect and enforce payment

by lawful means of all charges or assessments affecting such Condominium project; to pay all

expenses in connection therewith and all expenditures incident to

-29-

the conduct of the administration and business of the Condominium and all licenses, franchise

taxes, and governmental charges levied or imposed against this corporation or the Common

Elements of the Condominium.

(4) In connection with the affairs of such Condominium, to buy sell and deal in real

property, personal property and services and to exercise any and all other powers, rights and

privileges which a corporation organized under the Texas Non-Profit Corporation Act may by law

now or hereafter exercise.

The aforesaid statement of purposes shall be construed as a statement of both purposes and

of powers and shall be broadly construed to effectuate its intent.

ARTICLE V

The street address of the initial registered office of the corporation is 12700 Park Central

Place, Suite 1604, Dallas, Texas 75251 and the name of the initial registered agent at such address

is James H. Coker.

ARTICLE VI

The number of Directors constituting the initial Board of Directors of the Corporation is

three (3) and the names and addresses of the persons who are to serve as the initial Directors are:

James H. Coker 12700 Park Central Place, Suite 1604,

Dallas, Texas 75251

Peter Van Vleck 4227 Herschel Avenue

Dallas, Texas 75219

Thomas L. James 12700 Park Central Place, Suite 1604,

Dallas, Texas 75251

ARTICLE: VII

The names and addresses of the incorporators are:

James H. Coker 12700 Park Central Place, Suite 1604,

Dallas, Texas 75251

Peter Van Vleck 4227 Herschel Avenue

Dallas, Texas 75219

Thomas L. James 12700 Park Central Place, Suite 1604,

Dallas, Texas 75251

-30-

ARTICLE VIII

Every person or entity who or which is a record owner of a Residence Unit or legal interest

therein, (except those persons or entities holding an interest only as security for the performance of

an obligation), and only such persons or entities, shall be Members of this corporation.

Membership in this corporation shall be appurtenant to and may not be separated from ownership

of any Residence Unit. Ownership of a Residence Unit or interest therein shall be the sole

qualification for membership in this Corporation.

Except as provided herein, there shall be one (1) vote in the affairs of this corporation for

each Residence Unit; provided, however, Penthouse Unit 22A and Penthouse Unit 22B shall each

have two (2) votes. In the event that Ownership interests in a Residence Unit are owned by more

than one Member of the Council, the Member's who own fractional interests in such Residence

Unit aggregating more than 50% of the whole ownership thereof shall appoint one member who

shall be entitled to vote the vote of that Residence Unit at any meeting of the Council.

Notwithstanding the foregoing, the Developer shall be entitled to three (3) votes for such

Residence Unit owned by the Developer until such time as the total number of votes exercisable

by the Members of this corporation other than the developer exceeds the number of votes

exercisable by the Developer. Cumulative voting in the election of directors or in other exercises

of the right to vote is prohibited. The terms used herein shall have the same meaning given to

them in the Declaration of Condominium of 3525 Condominiums.

ARTICLE IX

These Articles's of Incorporation may be amended only upon the affirmative vote of the

holders of seventy-rive percent (75%) of the number of votes exercisable by the Members of this

corporation.

ARTICLE X

All of the powers and prerogatives of the corporation shall be exercised by the initial Board of

Directors named above until the first meeting of the Members of the~ corporation. The first

meeting of the Members of the corporation may be called by the initial Board of Directors on ten

(10) days notice to the Members at any time, but must be called no later than thirty (30) days after

the time at which at least fifty percent (50~) of the total number of Residence Units have been sold

by the Developer, deeds therefor delivered and the full purchase price therefor paid.

-31-

ARTICLE XI

The By-laws of the corporation may be altered, amended or repealed only by the

affirmative vote of the holders of sixty percent (60%) of the number of votes entitled to

vote upon an amendment thereof.

IN WITNESS WHEREOF, we have hereunto set our hands this day of

, 197___.

JAMES H. COKER

PETER VAN VLECK

THOMAS L. JAMES

STATE OF TEXAS

COUNTY OF DALLAS

I, the undersigned Notary Public, do hereby certify that on this day of

,197___ personally appeared before me, JAMES COKER, PETER

VAN VLECK, and THOMAS L. JAMES, who after being by me duly sworn, declared that

they are the persons who signed the foregoing document as incorporators and that the

statement contained therein are true and correct.

IN WITNESS WHEREOF, I have hereunto set my hand and seal of office the day

and year above written.

Notary Public in and for


-32-

BY-LAWS OF

THE 3525 CONDOMINIUMS COUNCIL OF CO-OWNERS

THE 3525 CONDOMINIUMS COUNCIL OF CO-OWNERS, a Texas non-profit

corporation, is the corporation referred to in the Declaration of Condominium of The 3525

Condominiums, a Condominium Regime in Dallas, Dallas County, Texas created pursuant

to the provisions of the Texas Condominium Act. This corporation is and shall have all of

the powers of the "Council of Co-Owners" as authorized by the Texas Condominium Act.

The terms used in these By-Laws shall have the same meanings given to them in the

Declaration of Condominium unless otherwise specifically provided.

ARTICLE I

OFFICES

The principal office of The 3525 Condominiums Council of Co- Owners shall be at

3525 Turtle Creek Boulevard, Dallas, Texas 75219.

ARTICLE II

MEETINGS OF COUNCIL

Section 1. Order of Business and Annual Meeting. At the Annual Meeting of

the Council, the following shall be the order of business.

(a) Reading of the minutes of the last Annual Meeting of the Members;

(b) President's report;

(c) Secretary and Treasurer's reports;

(d) Election of Directors to replace Directors whose terms have expired in accordance

with the terms of the Declaration of Condominium for the Council for the ensuing year;

(e) Other business that may be properly brought before the Meeting.

Section 2. Notice of Meetings. Notice of Meetings shall be given as provided in

the Declaration of Condominium. A Waiver of Notice signed by the person entitled to

notice of such Special Meeting, whether before or after the Meeting, shall be equivalent to

the giving of such notice.

Section 3. List of Members. The Secretary of the Council shall keep at all times a

current and complete list of the Members of the Council. Such list shall be arranged in

alphabetical order, with the address of and the Percentage Ownership Interest of each such

Member. Such list shall be kept on file at the office of the Council and shall be subject to

inspection by any Member at any time during the usual business hours. Such list shall also

be present and kept open at the time and place of all Meetings of Members; shall be

available for inspection of any Member during the time of such meeting; and shall be

prima facie evidence as to the identity of the Members.

-33-

Section 4. Method of Voting. Voting on any Question, other than any election, may be

by voice vote or show of hands unless the presiding officer shall order or any Member shall

demand that voting be by roll call or by written ballot. The presence of the Members having

a majority of the number of votes in the Council shall constitute a Quorum at a meeting of

Members. The vote of the Members having a majority of the votes in the Council thus

represented at a meeting at which a Quorum is present shall be the act of the Council,

unless the vote of a greater number is required by the terms and provisions of the

Declaration of Condominium, these By-Laws "or the Texas Condominium Act.

ARTICLE III

DIRECTORS

Section 1. Directors. Directors shall be elected and qualified as provided in the

Declaration of Condominium.

Section 2. Removal. Any Director may be removed from his position as Director,

either with or without cause by the vote of two-thirds of the total votes represented at either

an Annual or Special Meeting of the Council.

Section 3. Vacancies and Filling of Vacancies. A particular directorship shall be

deemed to be vacant upon the removal of a Director as provided in this Article, upon the

death of the person holding such directorship, upon the refusal or failure of a person elected

to such directorship to serve; upon the resignation of the person holding such directorship

or upon the sale by the Director of his Residence Unit. Any vacancy occurring in the Board

of Directors shall be filled at the next Meeting of the Board of Directors following the

occurrence of such vacancy, or, if the vacancy occurs while a Directors Meeting is in

progress, such vacancy shall be filled at such Meeting. Such vacancy shall be filled by the

affirmative vote of a majority of the remaining Directors comprising no less than a quorum.

A Director who is elected to fill a vacancy shall serve for the unexpired term of his

predecessor in such directorship.

Section 4. Adjournment. Any Meeting of the Directors may be adjourned from

time to time by those present, whether a quorum is present or not.

Section 5. Waiver of Notices. Notice of any Special Meeting of Directors may be

waived in writing signed by the Director or Directors entitled to such notice; such waiver

may be executed at any time before or after the time specified in the Declaration of

Condominium for the giving of such notice. Attendance of a Director at a Special Meeting

shall constitute a waiver of notice of such Special Meeting, except where a Director attends

a Meeting for the express purpose of objecting to the transaction of any business or to

notify the Board that the Meeting is not properly called or convened in accordance with the

terms of the Declaration or these By-Laws.

-34-

Section 6. Compensation. Directors as such shall not receive any stated salary for

their services, but by Resolution of the Board a fixed sum and expenses of attendance, if

any, may be allowed for attendance at each Meeting of the Board; provided that nothing

contained herein shall be construed to preclude any Director from serving the Council in

any other capacity and receiving compensation therefor.

Section 7. Actions without a Meeting. Notwithstanding any other provision of

these By-Laws, any action requ1r,ed or permitted to be taken at a Meeting of the Board or

Directors may be taken without a Meeting if a consent in writing, setting forth the action so

taken, is signed by all of the Members or all or the Board of Directors, as the case may be.

Such consent shall have the same force and effect as a unanimous vote at a Meeting.

ARTICLE IV

OFFICERS

Section 1. President. The President shall be the principal executive office of the

Council and shall in general supervise and control all of the business and affairs of the

Council. The President shall preside at all meetings of the Members and all meetings of the

Board of Directors. He shall sign, with the Secretary or an Assistant Secretary, any deeds,

mortgages, bonds, contracts, or other instruments which the Board of Directors has

authorized to be executed, except in cases where the signing and execution thereof shall be

expressly delegated by the Board of Directors to some other officer or agent of the Council,

or shall be required by law to be otherwise signed or executed; and in general he shall

perform all duties incident to the office of President and such other duties as may be pre-

scribed by the Board of Directors from time to time. The President shall not have the

authority to bind the Council to any employment agreement in behalf of the Council unless

such employment agreement be expressly approved and authorized in advance by

Resolution of the Board of Directors. In the event that any such employment agreement

provides for the Council employing any person who at the time of such employment or at

any time during the period of such employment is an officer of the Council, then no

provision of such contract purporting to amplify the authority of such 0fficer beyond the

authority set forth in these By-Laws shall be valid or effective unless these By-Laws are

amended in a manner consistent with such employment agreement, and the mere signing of

such employment agreement in behalf of the Council and its approval at a meeting of the

Board of Directors (and/or Members) shall not constitute an amendment of these By-Laws.

In the event that any such employment agreement (whether or not these By-Laws be

amended incident thereto) limits or Qualifies the authority of any such officer in a manner

inconsistent with these By-Laws or imposes on such officer duties not provided for under

these By-Laws, then the provisions of such employment agreement limiting and qualifying

such authority and imposing such duties shall be valid and effective notwithstanding any

inconsistency between the provisions of such employment agreement and the provisions of

these By-Laws.

-35-

Section 3. Vice Presidents. In the absence or the President or in the event or his

inability or refusal to act, the Vice President (or in the event there be more than one Vice

President, the Vice Presidents in the order designated, or in the absence of any designation,

then in the order of their election) shall perform the duties of the President, and when so

acting, shall have all the powers of and be subject to all the restrictions upon the President.

Any Vice President shall perform such other duties as from time to time may be assigned to

him by the President or by the Board of Directors.

Section 4. Secretary. The Secretary shall: (a) keep the minutes of the meetings of

Members and of the Board of Directors in one or more books provided for that purpose; (b)

see that all notices are duly given in accordance with the provisions of these By-Laws or as

required by law; (c) be custodian of the Council's records and of the seal of the Council, if

any; (d) keep a register of the post office address of each Member; (e) have general charge

of the books of the Council; (f) in general perform all duties incident to the office of

Secretary and such other duties as from time to time may be assigned to him by the

President or by the Board of Directors.

Section 5. Treasurer. If required by the Board of Directors, the Treasurer shall give a

bond for the faithful discharge of his duties in such sum and with such surety or sureties as

the Board of Directors shall determine. He shall: (a) have charge and custody of and be

responsible for all funds and securities of the Council, receive and give receipts for monies

due and payable to the Council from any source whatsoever, and deposit all such monies in

the name of the Council in such banks, trust companies or other depositories as shall be

5~lected by the Board of Directors; (b) in general perform all the duties incident to the

office of Treasurer and such other duties as from time to time may be assigned to him by the

Board of Directors.

Section 6. Additional Officers. Officers in addition to the Vice President,

Secretary and Treasurer may be appointed by the Board of Directors and shall hold the

offices for such terms and shall have such authority and exercises such powers and perform

such duties as shall be determined from time to time by the Board by Resolution not

inconsistent with these By-Laws. The Assistant Treasurers shall respectively, if required by

the President or Board of Directors, give bonds for the faithful discharge of their duties in

such sums and with such sureties as the President or Board of Directors shall determine.

The Assistant Treasurers and Assistant Secretaries, in general, shall perform such duties as

shall be assigned to them by the Treasurer or the Secretary, respectively, or by the President

or the Board of Directors.

Section 7. Vacancies. A vacancy in any office because of the death, resignation,

removal, disqualification or otherwise of the officer previously filling such office, may be

filled by the Board of Directors for the unexpired portion of the term.

-36-

ARTICLE V

INDEMNITY

Section 1. The Council shall indemnify the Board (and each member thereof) and its

Officers (each of them) against expenses and liabilities (including the cost and expense of

defending against any such alleged liability) reasonably incurred by such person or persons

by reason of his being or having been an Officer or Director of the Council except in cases

where such Director or Officer is adjudged guilty by 8 court of competent jurisdiction of

willful misfeasance or malfeasance, bad faith, gross negligence or reckless disregard of the

duties involved in the conduct of his office.

Section 2. The rights of indemnification herein provided may be insured against by policies

maintained by the Council; shall be severable, shall not affect any other rights to which any

Director or Officer may now or hereafter be entitled, shall continue as to a person who has

ceased to be such Director or 'Officer and shall inure to the benefit of the heirs and personal

representatives of such person. Nothing contained herein shall affect any rights to

indemnification to which Council personnel other than Directors and Officers may be

entitled by contract or otherwise under law.

Section 3. Expenses in connection with the preparation and presentation of a defense to any

claim, action, suit or proceeding of the character described above may be advanced by the

Council prior to final disposition thereof upon receipt of an undertaking by or on behalf of

the Director or Officer, secured by a surety bond or other suitable insurance issued by a

company authorized to conduct such business in the State of Texas, to repay such amount if

it is ultimately determined that he is not entitled to indemnification under this Article.

ARTICLE VI

CONTRACTS, LOANS, CHECKS DEPOSITS AND TRANSACTIONS

Section 1. Contracts. The Board of Directors may authorize any Officer or Officers,

agent or agents, to enter into any contract or execute and deliver any instrument in the name

of and on behalf of the Council, such authority may be general or confined to the specific

instance.

Section 2. Checks, Drafts, Etc. All checks, drafts or other orders for the payment of

money, notes or other evidences of indebted- ness issued 1n the name of the Council shall be

signed by such officer, officers, agent or agents of the Council and in such manner as shall,

from time to time, be determined by Resolution of the Board of Directors.

-37-

Section 3. Deposits. All funds of the Council not otherwise employed shall be

deposited, from time to time, to the credit of the Council in such banks, trust companies

or other depositories as the Board of Directors may select.

Section 4. Transactions with Members, Directors and Officers. The Council

may enter into contracts or transact business with one or more of its Directors, Officer-s,

or Members, or with any firm of which one or more of its Directors, Officers or Members

are members, or with any corporation, association, company, organization or entity in

which one or more of its Directors, Officers or Members are directors, officers, trustees,

shareholders, beneficiaries or are otherwise interested, and in the absence of fraud, such

contract or transaction shall not be invalidated or anywise affected by the fact that such

Directors, Officers or Members having such adverse interest may have been necessary to

obligate the Council upon such contract or transaction.

ARTICLE VII

AMENDMENT

Section 1. These By-Laws may be amended by the affirmative vote of the Owners of

sixty percent (60%) of the number of votes entitled to vote on such question.

-38-

BUILDING FACILITIES AND EQUIPMENT

Section 3 (cont'd) (Updated 8/1/97)

3.12 MAIL ROOM: The Mail Room, located in the Lobby Area, has side boxes next to the U.S. Mail

Box. These side boxes are for 3525 correspondence. You may also use them, but we request

they not be used for outside advertising or events not in the common interest of 3525 unit Owners.

3.13 PARKING: Each unit is allotted two reserved parking spaces. For details see PARKING,

SECTION 20.

3.14 RESTRICTED AREA: Owners, their families, guests, servants, employees, agents, visitors or

licensees shall not at any time or for any reason whatsoever enter upon or attempt to enter upon

the roof of the building.

3.15 SWIMMING POOL: There is a swimming pool for Owners and their guests. For details, see

SWIMMING POOL, SECTION 24.

3.16 TRASH CHUTE: A trash chute is located on each floor. This is small and connects to the

compactor in the basement. Please do not put coat hangers, cardboard boxes or anything that

might catch sideways and block it. This trash chute is for small trash bags only!

3.17 USE OF TOOLS: All building equipment, including tools, saws, drills, sweepers, etc., shall be

used only by authorized 3525 personnel.

3.18 WINDOWS AND DOORS: Owners must close all exterior windows or sliding doors as our central

heating and cooling system is designed to provide maximum efficiency only in closed units.

Introduction of outside air can cause your wall vents to sweat and damage your wall with excess

moisture. A closed window also avoids possible damage from storms or the elements.

3.19 VENDING MACHINES: A coin operated cold drink and snack machine is located in the Rear Hall

(first floor). A bill changer is also located there. 3525 is not responsible for these machines, lost

coins, etc, call the vendor!


4.01 When a unit Owner has any maintenance or construction work which needs to be done by the

building employees, it must be scheduled through the Management Office, there is a fee charged.

4.02 The 3525 Condominiums are responsible only for maintaining the original structure and

equipment, and not for any alterations or additions in the individual condominium units.

4.03 Maintenance responsibilities of The 3525 Condominiums:

Exterior of Building

Lobby area and hallways

Re-caulking of exterior windows - but not replacement

All of these responsibilities are subject to Paragraph 4.02 above.

4.04 Maintenance responsibilities of the Owners of 3525:

Air conditioning and heating mixing boxes within units

Air conditioning and heating filters (building will provide two free changes annually)

Dishwashers

Garbage disposers

Lighting fixtures and bulbs

Plumbing fixtures (including faucet leaks, washers, running commodes, etc.)

Ranges

Refrigerators

Showers - replacing pans or tile

Television sets

Thermostats and controls

Unit interior: cabinets, decorating, walls, interior doors, floors, ceiling, windows, etc.

Vent-a-hoods

4.05 Do not sweep or throw or permit anything to be swept or thrown from the doors, windows, or

balconies.

4.06 To establish responsibility for payment for repairs of damages in or to individual condominiums

caused by water, wind, or any other causes, the Board of Directors has established this policy:

3525 will repair the damage only when it is the result of its negligence in the maintenance of the

building or a fault in the structure of the building.

4.07 Any damage resulting from misuse of any water closet or other apparatus shall be paid for by

Owner in whose unit such damage shall have been caused.

4.08 Water shall not be left running for an unreasonable or unnecessary length of time.

4.09 No Owner shall interfere in any manner with any portion of the plumbing, heating, air conditioning

or lighting apparatus which is part of the common elements and not part of the Owners’

condominium.


(cont'd)

4.10 No exterior shades, awnings, window guards, ventilators, fans or air conditioning devices shall be

installed or used in or about the building’s common elements, or balconies except such as shall

have been approved by the Board or Manager in writing. If the Owner shall fail to keep any such

approved device in good order, repair and appearance, the Board or the Manager may remove

such device, charging the cost of removal to the Owner; and the device shall not be replaced until

it has been put in proper condition, and only with the further written consent of the Board or

Manager.

Reflective window tint film may be installed with Board approval. The required color is grey tint.

CHILDREN Section 5

5.01 If a guest or otherwise occupant, of a condominium unit disturbs another Owner and/or tenant by

creating noises audible outside the condominium unit which he occupies, by violating the rules of

3525 or by otherwise interfering with the peaceful enjoyment by other Owners and tenants of their

condominium unit and the common areas, the Board or the Manager may give notice to the

Owner of such condominium unit to cause such disturbances or interference to be discontinued.

After (i) two (2) notices of separate violations have been given and the Owner fails to cause the

violations to cease; (ii) ten (10) days prior written notice to the Owner of such condominium unit;

and (iii) an opportunity for such Owner to have a hearing before the Board, the Board may, to the

extent permitted by law, revoke its permission to allow the occupancy by the child of the

condominium unit, if such permission has been given, and may terminate the tenancy of the

leaseholder in such condominium unit as provided in the Declaration of Condominium and, in

addition, may exercise any and all rights at law or in equity.

5.02 Children shall not be permitted to play in the common area halls, stairways, garages, or elevators.

5.03 No bicycles, scooters, shopping carts, or similar vehicles shall be allowed to stand in the common

area halls or passageways of the building.

5.04 There shall be no parties of minors in the common areas of the building or inside condominium

units without written permission of the sponsoring Owner, who shall give written notice in advance

to the Building Manager. Further, all such parties must be attended by the sponsoring adult

Owner and have adequate adult supervision. The Owner shall be fully responsible for any

damage that may occur during the period of the party.

5.05 Minors are not permitted to operate exercise equipment in the exercise room unless accompanied

by parents who have signed the general release form supplied by the Manager.

COMMON AREAS Section 6

6.01 The common area, halls and stairways of the building shall not be obstructed nor used for any

purpose other than ingress to and egress from the condominium units in the building and fire

equipment shall not be obstructed in any way.

6.02 Children shall not be permitted to play in the public halls, stairways, elevators, or garages.

6.03 No article or object of any type shall be placed in the stairway landings. This is in compliance with

fire regulations.

6.04 No bicycles, scooters, shopping carts or similar vehicles shall be allowed to stand in the common

area, halls, or passageways of the building.

6.05 Any item placed in any hallway shall be subject to approval by the Board of Directors and review

by fire inspectors and subject to removal.

6.06 The Board has the authority to designate a “Special Use” for certain common areas.

COMPLAINTS, KEYS AND MISCELLANEOUS Section 7

7.01 To insure prompt and effective action relative to complaints, requests, and suggestions, Owners

are asked to submit such matters in writing. A form is available in the Management Office.

Neither the Board of Directors nor the Manager can assume responsibility for complaints,

requests, or suggestions submitted verbally. Please do not make these requests in person to a

Board Member; direct them to our Management Office in writing. However, minor matters such

as requests for housekeeping or maintenance service, can still be taken over the phone or

verbally by the Manager.

7.02 No Owner shall make or permit any disturbing noises or noxious odors i.e. pipe, cigar, or cigarette

smoke, in the building or do or permit anything to be done therein which will interfere with the

rights, comfort, health, or convenience of other Owners.

7.03 No Owner shall play upon or allow to be played upon any musical instrument or permit to be

operated a phonograph, radio or television loud-speaker in his unit between the hours of eleven

o'clock (11:00) PM and the following nine o'clock (9:00) AM if the same shall disturb or annoy

other occupants of the building.

7.04 No radio or television antenna shall be attached to or hung from the exterior of the building without

the approval of the Board of Directors.

7.05 Keys, Lock-out Policy: Unit Owners are responsible for maintaining their own keys to prevent

locking themselves out of their unit. The Building Management is not responsible for providing

entry to locked-out unit Owners.

The Building Management will provide lock-out entry services during office hours!

Providing a unit key has been given to the Management Office by the unit Owner.

After office hours and before 10:00 PM, the front security will attempt to contact a

Board member for assistance. A charge to the unit Owner may be levied for this

service.

If no assistance is available, or after 10:00 PM, the unit Owner will need to call a

locksmith.

For leased units, see LEASES, SECTION 16.


8.01 No permission for additional build-outs will be permitted until an engineering study is made

concerning the heating and cooling capacity of our present facilities, at the expense of the Owner.

8.02 A set of plans showing any and all modifications of any condominium unit must be presented to

the Board of Directors. Approval in writing by the Board must be given, before any such

modifications are made. The modifications must then be made only in accordance with the plans

as approved by the Board.

8.03 A building permit from The City of Dallas must be posted inside of the front door of the unit during

construction. A photo copy of this permit must be presented to the Building Manager before any

remodeling or construction can start.

8.04 A construction security deposit will be required prior to approval of any remodeling or construction.

8.05 No supplementary air-conditioning or heating system may be installed without approval of the

Board of Directors.

8.06 No blinds, awnings, or other material attachments will be permitted to cover or extend from the

exterior or balcony.

8.07 No Owner shall make or attempt to make within his unit any repairs, alterations, modifications, or

innovations to the air-conditioning, electrical system, water system, or to any structure, service

facility, or any other common appurtenance which might adversely affect other Owners, unless

such work is expressly authorized by the Board of Directors and is conducted under the direct

supervision of the Building Manager. Any unauthorized work affecting the common interest and

deemed hazardous in any way may be corrected by the Building Manager at the Owners’

expense.

8.08 Any window replacement requires that an energy efficient grey tinted, insulated, or thermopane

type glass be used. Single pane windows cannot be replaced.

8.09 If a window is broken, unit Owner is responsible for replacement of single or double-pane glass.

8.10 The Board of Directors reserves the right to have an added maintenance charge on any increase

in the air-conditioning, i.e. window units, heating system, or electrical system, which is added to

any condominium.

8.11 In remodeling units, one hour fire-block wall-board or equal material must be used in all walls and

approved by the Manager before such usage.

8.12 Spray painting will be allowed inside any condominium providing all HVAC vents, smoke

detectors, etc. are taped and covered. 3525 has a central HVAC system and failure to do this

could be hazardous to others health.


(cont'd)

8.13 No Owner doing the work himself nor any contractor may use any of the building's tools, shops, or

garage space. All such work must be done inside the unit or off the 3525 premises.

8.14 Owners or contractors may not work on any remodeling on Saturdays, Sundays, or legal holidays,

and no work shall be done past 4:30 P.M. The Owner having work done will be legally

responsible for keeping all hallways, elevators, etc., clean. If 3525 has to spend any time cleaning

a hallway, elevator, etc. as a result of work done by the contractor, the Owner will be fully charged,

including all over-time pay, if any. Arrangements to use the trash bin by the contractor must be

made with the Management Office so that charges can be made accordingly, or the Owner will be

charged for the full use of the bin.

8.15 All contractors must place a protective covering on the carpet of the floor they are working on from

the elevator to the unit they are working in. This protective covering must be put down each day

they are working in the unit, and must be taken up each night before they leave. If the contractor

fails to do so, as directed, a fine will be imposed.


Section 9

9.01 3525 RULES FOR CONTRACTORS

In order to establish a working arrangement between our maintenance people, housekeeping staff,

security, contractors, unit Owners and workmen from all trades, the following rules have been

established.

1. Legal building permit must be posted inside of the front door of unit being renovated and

be plainly visible during entire work period and inspector called on completion.

2. All material vehicles and workmen are to use back entry gate and all contractors and

workmen will sign in and out of the building using the register provided at the back

security desk. Security will provide a temporary identification badge which the

contractor MUST wear at all times while on Association property.

3. Doors to condominiums must be closed while work is proceeding within. If found open;

rule #9.23 will apply.

4. No work will be permitted in the building before 9:00 AM or after 4:30 PM weekdays nor

on weekends or holidays.

5. Hallways, corridors and doorways must be protected when materials and furnishings are

brought in or out.

6. You are expected to confine your activities to the area in which you are working. No

loitering throughout the building. Smoking in unauthorized areas will cause a $25.00 fine

to be deducted from the cash deposit.

7. The freight elevator is not to be held on floors. KEEP IT MOVING. All maids, porters and

unit Owners in the building use it, especially for laundry. We have to share.

8. Please do not wedge the doors of the freight elevator to keep them open. It ruins the

adjustment on the doors.

9. DO NOT USE THE FRONT ELEVATORS

10. Park your cars on the upper deck of the parking garage at all times.

11. Trash trailers may be parked at the back entrance for short periods of time only. Please

coordinate this with the back security person.

12. Please do not ask to borrow the maintenance staff's tools and equipment.

13. Debris is not to be placed in the trash chutes, on the floors or thrown down air shafts. The

trash compactor is not equipped to handle construction materials. The building dumpster

will not be used by contractors.

14. When working in condominiums, always be conscious of open patios and windows. Great

care must be taken to insure that nothing is dropped, thrown or pushed from an open

area.

15. Food wrappers, such as lunch sacks, candy wrappers, drink bottles, cans and cartons are

not to be left on the construction site or in the vending area. These items cause

unwanted bugs and are unsightly. There is a trash can next to the vending machines;

please use it. Please pickup and dispose of all trash when the work day is over.

16. All trash and debris is to be put in containers before being placed on the freight elevator

and disposed of by construction crew.

17. When painting or doing demolition work in one of the units, it is important to cover the

return air ducts and smoke alarms so the dust or fumes is not carried back through the

central air conditioning system nor are smoke alarms set off. Contractor MUST notify

the Maintenance Department as to the scope of work being performed and to

ensure that all return air ducts and smoke detectors were properly covered prior to

any work being started.

Page 1 of 4


Section 9

(cont'd)

9.01 3525 RULES FOR CONTRACTORS (cont'd)

18. All plans for the renovation must be supplied to the Building Manager’s Office. No

admittance to the building for work will be allowed unless all plans are submitted.

19. Work which will affect the common area in any way must have the Association's

approval...i.e.-ceilings, floors, exterior walls, windows and balconies.

20. Replacing of windows may be done by using grey tinted, insulated, or thermo-pane type.

The Board will not approve single pane glass, due to its energy, heat, and air conditioning

loss.

21. Do not touch the TV antenna or fire alarm system!!! Call the Building Manager's Office at

(214) 526-3525 for assistance. Repairs for damage to the system will be billed to the unit

owner per rule #9.23.

22. Do not attempt to move or change the house phone!!! Call the office at (214) 526-3525 for

assistance. Repairs for damage will be billed to the unit owner.

23. A $1,000.00 security deposit is to be left in the Management Office before starting any

work in a condominium. This is to cover any damages, extra work by building employees

or other cost involved incidents caused by construction work. The amount involved in any

incident to be deducted from the security deposit with any remaining amount to be

returned upon completion of the construction job.

24. All demolition work may be done between the hours of 10 am to 4:30 pm. No demolition

work may be done outside of these hours. All trash and debris must be put in containers

supplied by the contractor. Under no circumstances may a contractor use the trash

containers belonging to 3525.

One copy of these Contractors Rules is to be signed and turned into the Management

Office along with the security deposit before a job may be started.

9.02 THE FOLLOWING ARE SUGGESTIONS AND RECOMMENDATIONS FOR

REMODELING BASED ON BUILDING'S PAST EXPERIENCES

1. Any appliance requiring a sump pump such as an icemaker please make sure the unit

Owner is advised and shown a way to immediately cut off water in unit. In the past when

the sump pump has failed the water continued to run and has flooded lower floors at the

expense of the unit Owner.

2. Flooring - Since marble and wood are noisy they require extra insulation.

3. When turning closets into bookcases, etc. please insulate behind wall as there is another

family living on the other side of the wall. Owners have no privacy from neighbors due to

the lack of insulation.

4. In kitchen, place rubber bumpers on backs of drawers. This is simple to do when

installing cabinets.

9.03 SPECIFICATIONS FOR VENTING, PLUMBING AND ELECTRICAL WORK

1. All dryers shall be connected to the existing vent stacks as follows:

In Units A, D and E the four inch round sheet metal (24-gauge) vent shall be connected to

the existing exhaust stack that is presently venting in the maid's closet adjacent to the

corridor. The owner of the D Unit shall have the option of running the vent duct to the

exhaust riser serving the bath in Unit C.

2. The exhaust serving Unit B shall be connected to the exhaust riser near the A Unit

located between baths 1 and 3 in A Unit directly behind the kitchen in the units.

3. The exhaust riser for C Unit shall be connected to the existing exhaust stack serving Unit

B.


Section 9

(Cont’d)

9.03 SPECIFICATIONS FOR VENTING, PLUMBING AND ELECTRICAL WORK (cont'd)

4. All plumbing serving the washing machines shall be connected to the existing plumbing

stacks in the closest proximity to the washer unit. The material for the two inch waste

connection for the washer shall be all copper pipes. The washer shall discharge open site

into this waste line. The 1/2 inch water pipe serving the washer shall be type "L" soft or

hard copper and shall include a shutoff valve.

5. Should the Owner of the unit desire to locate the washer/dryer at a location other than the

kitchen wall near the service entrance to the unit, for instance in the breakfast area in

some of the larger units, the Owner of the unit will be permitted to connect the exhaust

from the dryer to any existing toilet exhaust riser. In no case is the Owner of the unit to tie

the exhaust from the dryer into existing ducts that are serving as kitchen exhaust.

9.04 INSURANCE REQUIREMENTS FOR CONTRACTORS WHO PERFORM WORK AT

3525 TURTLE CREEK

Certificate of Insurance should be made to the following: "The 3525 Condominiums

Council of Co-Owners, 3525 Turtle Creek Blvd., Dallas, TX 75219

The following coverage is our minimum requirements; for larger and more detailed jobs we

require additional insurance.

Comprehensive General Liability Umbrella Catastrophe Liability

Bodily Injury Liability $1,000,000 each occurrence and in the

aggregate


$500,000 aggregate completed operations

Property Damage Liability Workers' Compensation Ins.

(Including Broad Form Property Damage) Statutory coverage for State of Texas

$100,000 each occurrence Employer's Liability - $100,000

$100,000 aggregate

Comprehensive Automobile Liability

Bodily Injury

$250,000 each person


Page 3 of 4


TITLE EXAMINER’S REPORT

NORTH AMERICAN TITLE COMPANYEXAMINER'S REPORT

Examiner's Report 14716-17-00969

GF No.: 14716-17-00969 Underwriter: North American Title Insurance Company

Effective Date: September 24, 2017

Estate: Fee Simple

Title Vested in: Elizabeth Jeffett

Buyer/Borrower: TBD

Legal Description:

Condominium Unit 17B, of The 3525 Condominiums, a condominium project located in the City of Dallas,Dallas County, Texas, together with an undivided percentage interest in the common elements appurtenantthereof, according to the Declaration of Condominium and Exhibits thereto, recorded in Volume 78002, Page738, Condominium Records, Dallas County, Texas along with any and all supplemental declarations thereto.

Restrictions:

The following restrictive covenants of record itemized below. (We must insert specific recording data or deletethis exception.):

Volume 78002, Page 738, Condominium Records, Dallas County, Texas and Volume 78212, Page 492, Volume82165, Page 981, Volume 87131, Page 1915, and Volume 2000012, Page 6719 of the Real Property Records ofDallas County, Texas

Exceptions:

a. Visible and apparent easements on or across the property covered by this policy which may not appearof record. (This item will not appear on Schedule "B" of the policy if a survey is provided by an approvedsurveyor showing no such easements.)

b. Rights of parties in possession. (Affects Owner Policy Only).

c. All leases, grants, exceptions or reservations of coal, lignite, oil, gas and other minerals, together with allrights, privileges and immunities relating thereto, appearing in the Public Records whether listed inSchedule B or not. There may be leases, grants, exceptions or reservations of mineral interest that arenot listed.

d. Any portion of the subject property lying within the boundaries of a public or private roadway whetherdedicated or not, or which may be used for road or street purposes.

e. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the title thatwould be disclosed by an accurate and complete land survey of the land. (Note: Upon receipt of a surveyacceptable to Company, this exception will be deleted. Company reserves the right to add additionalexceptions per its examination of said survey.

f. All terms, conditions, covenants, easements, restrictions, assessments, maintenance charges, and otherprovisions as recorded in Volume 78002, Page 738, as amended, supplemented, refiled and/or restated,Dallas County, Texas.

g. Lease of Laundry Facilities granted to United Coin Meter Company, Inc. by instrument dated September

rochellem

Text Box

GF NO.: 14716-17-00969


19, 1972, filed March 23, 1973, recorded in/under Volume 73060, Page 577 of the Real PropertyRecords of Dallas County, Texas.

h. Easement executed by 3525 Turtle Creek, Inc., to Dallas Power & Light Company, dated December 6,1956, filed December 27, 1956, recorded in/under Volume 4629, Page 543 of the Real Property Recordsof Dallas County, Texas.

i. Right of First Refusal in favor of Council of Co-Owners contained in Dedication, dated December 14,1977, filed December 30, 1977, recorded in Volume 78002, Page 738, Condominium Records of DallasCounty, Texas.

j. Right of Entry Agreement to Warner-Amex Cable Communications, Inc., dated August 12, 1981, filedNovember 3, 1981, recorded in/under Volume 81215, Page 1932 of the Real Property Records of DallasCounty, Texas.

k. Lease of Laundry Facilities granted to Kwik-Wash Laundries, Inc. by instrument dated December 22,1982, recorded in/under Volume 82248, Page 1757 of the Real Property Records of Dallas County,Texas.

l. Rights, titles and interest of any adjoining property owner or lienholder, their respective heirs, successorsand assigns, in and to all structural elements that comprise any part of the overall structural unit of whichany individual condominium/townhouse residence is a part and which may be considered common to allsuch residences (including but not limited to common or party walls, common roofs and commonfoundations); and subject to the rights, also, of adjoining property owners in and to common areas ofuse, if any, and subject to the rights of co-owners to any such common structures as determined by anagreement to which all the property owners may be or become a part of including but not limited tocommunity streets, walks and driveways.

m. Rights of tenants in possession, as tenants only, under any unrecorded leases or rental agreements.

n. Any common or party walls existing between improvements located on the subject property and rights ofadjacent parties or third parties thereto.

o. Company has no liability under this commitment until an endorsement is issued stating theamount of the proposed policy.

p. Company has no liability under this commitment until an endorsement is issued stating thenames of the proposed Insured. Once the proper names are provided, company reserves theright to make additional requirements and/or exceptions.

Schedule C:

1. Documents creating your title and interest must be approved by us and must be signed, notarized andfiled for record.

2. Satisfactory evidence must be provided that

- no person occupying the land claims any interest in that land against the persons named in paragraph 3of Schedule A,

- all standby fees, taxes, assessments and charges against the property have been paid,

GF NO.: 14716-17-00969


- all improvements or repairs to the property are completed and accepted by the owner, and that allcontractors, sub-contractors, laborers and suppliers have been fully paid, and no mechanic's liens,laborer's or materialmen's liens have been attached to the property,

- there is legal right of access to and from the land,

- (on Mortgagee Policy only) restrictions have not been and will not be violated that affect the validity andpriority of the insured mortgage.

3. You must pay the seller or the borrower the agreed amount for your property or interest.

4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filedafter the effective date of this Commitment.

5. Procedural Rule P-27 promulgated by the Texas Department of insurance provides a list of the types offinancial documents and instruments which satisfy the requirement that we disburse only when we havereceived good funds as required by said rule and Section 2651.202 Insurance Code. Please be advisedthat we reserve the right to determine on a case-by-case basis what form of good funds is acceptable.

6. Upon request and receipt of applicable premium, if any, and in accordance with Texas Procedural RuleP-50.1, T-19.2 and/or T-19.3 Minerals and Surface Damage Endorsements will be issued at the time ofclosing of this transaction.

7. Must be furnished affidavit of no liens.

8. Company requires the name of the Proposed Insured be provided for appropriate searches to beconducted.

9. Must be furnished marital and homestead status of owner from date of acquisition until present.

If married, REQUIRE spouse to join in conveyance. Also REQUIRE spouse's name be submitted forgeneral name search and possible commitment revision.

10. Must be determined if this property is homestead property. If a sale, both parties must execute alldocuments. If a refinance, both parties must execute all documents and we may insure for outstandingprincipal and interest and closing costs only.

11. NOTE FOR INFORMATIONAL PURPOSES ONLY: Per restrictions, assessment lien(s) is subordinateto "... the lien or liens of any Mortgages which may have hereto or may hereafter lend money in goodfaith for the purchase or improvement of any Residence Unit ..." as recited therein.

12. NOTE FOR INFORMATIONAL PURPOSES ONLY: The following deeds have been filed of recordaffecting the subject property:

General Warranty Deed filed December 3, 2015, recorded in Clerk's File No. 201500320361, DallasCounty, Texas, into current owner.

Quitclaim Deed filed March 26, 2012, recorded in Clerk's File No. 201200084792, Dallas County, Texas.

Warranty Deed with Vendor's Lien filed August 18, 2005, recorded in Volume 2005162, Page 1472,Dallas County, Texas.

GF NO.: 14716-17-00969


Additional Title Information:

10/05/2017 Rebekah Corder VESTING -- DALLAS -- 20150032036110/05/2017 Rebekah Corder TITLE: Seller name run: Elizabeth Jeffett

TITLE: Buyer name NOT PROVIDEDLegal access is provided via Turtle Creek BoulevardAssigned Title Officer: TX TitleRevResidential Title Grade: B

Notes to Closer:

Closer: Jeff FielderPlant Posting Data: DALLAS -- 78002/738; 17B/0Property Address: 3525 Turtle Creek Boulevard, Unit 17B, Dallas, TX 75219

EXAMINATION BASED UPON: COMMONWEALTH 2228000791 DIRECT

PATRIOT ACT NOTICE: It is North American Title Company policy to make sure that a reasonable search hasbeen made of the Specially Designated Nationals List to ensure that all parties to this transaction are not foundon this list. If and/or when a connection is found a requirement will be placed on Schedule C for appropriateaction to be taken.

Examiner: Rebekah Corder

THIS EXAMINER'S REPORT IS FOR THE INTERNAL USE OF NORTH AMERICAN TITLE COMPANY ONLY.NORTH AMERICAN TITLE COMPANY ASSUMES NO LIABILITY FOR ANY ERRORS OR OMMISSIONS OFANY INFORMATION RELATING TO THE PROPERTY DESCRIBED ABOVE. NORTH AMERICAN TITLECOMPANY MAKES NO REPRESENTATION TO ANY PARTY AS TO THE STATUS OF TITLE ON THEPROPERTY DESCRIBED ABOVE.


AUCTION PURCHASE AGREEMENT

Licenses/Bonds: Heritage Luxury Property Auctions Inc. NYC #41513036; CA #RSB2005644;

Auctioneer Mike Sadler: TX #16129; CA #RSB2006814; FL #AU3795; IL # 441001478; MA #03121; NYC #1304630; OH #2014000075; Thania Kanewske FL #AU4656; Marina Medina TX #17512; Nate Schar TX #17365; Nate Schar, a real estate broker licensed under the laws of the State of California-License # 01879044; James Ivy, a real estate broker licensed under the laws of the State of Texas – License No. 472843. Thania Kanewske, a real estate

broker licensed under the laws of the State of Florida-License # 3044330 FL Auction license #AU4656

Buyer’s Initials__________ Seller’s Initials__________

1

wate

AUCTION PURCHASE AGREEMENT

THIS AUCTION PURCHASE AGREEMENT is made effective 2017, by (hereinafter referred to as the “Seller”) and (“Buyer”) in accordance to the auction conducted by Heritage Luxury Property Auctions Inc. (“Heritage”) 1. AGREEMENT TO PURCHASE. Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller, pursuant to the terms and conditions herein set forth, the real estate and improvements situated in the county of Dallas , located at 3525 Turtle Creek Blvd, Unit 17B , (“Property”) [Legal Description: 3525 CONDOMINIUMS BLK 2/1043 ACS 2.8244 UNIT 17B & 0.0178771% CE INT201500320361 DD12012015 CO-DC 1043 002 00000 1DA1043 002, plus see Legal Description attached as Exhibit A] together with all buildings, improvements, fixtures owned by the Seller & attached to the Property; and all privileges and appurtenances pertaining thereto including any right, title or interest of Seller. Seller agrees to convey Property by General Warranty Deed (with all mortgages and liens paid off as of closing).

2. (A) HIGH BID PRICE $

(B) BUYERS PREMIUM (10% of HIGH BID PRICE) $

(C) EXTRAS, if Any (Pre-Bid, Furnishings, etc) $

(D) TOTAL PURCHASE PRICE (A + B ± C) $

(E) 10% EARNEST MONEY DEPOSIT, to be held in a non-interest bearing escrow account by Escrow Agent. (10% of D)

$

(F) Remaining Earnest Balance Due Now $

(G) BALANCE due at Closing (D – E) (not including Buyer’s closing costs or financing costs, pre-paids or pro-rations), to be in immediately available cash, bank certified or cashier’s check or confirmed wire transfer.)

$

3. TERMS. This is a Cash sale with TEN PERCENT (10%) non-refundable Earnest Money Deposit (“Escrow Deposit”) set forth in section (E) above on auction day payable in full by personal or cashier’s check made payable to the “Escrow Agent” (referenced below in section 4); with the balance of the total purchase price due at settlement of this transaction (“Closing”). Delivery of the deed and acceptance by the Buyer at Closing shall be deemed to be full performance and discharge of all obligations (either express or implied) on the part of the Seller to be performed pursuant to this agreement. No representation, warranty or agreement, express or implied of the Seller shall survive the Closing except those, which are herein specifically stated to survive the Closing. 4. CLOSING. Closing shall occur on or before December 15, 2017 (“Closing date”), at the offices of Stewart Title . (“Escrow Agent”), located at: 8201 Preston Road, Dallas, TX 75225 , or at such other location in Dallas County, Texas that the Seller may designate. At Closing, Seller shall deliver to Buyer a General Warranty Deed (the “Deed”) that shall convey fee simple title to the real property. Possession of the Property will be granted at Closing. 5. NO FINANCING CONTINGENCY. THIS AGREEMENT IS NOT CONTINGENT ON BUYER BEING APPROVED FOR A LOAN. 6. PRORATIONS. Ad valorem and non-ad valorem real estate taxes, other assessments, property owner’s association dues and any other items customarily prorated are to be adjusted as of the Closing date. 7. CLOSING COSTS. (a) Seller’s Costs. Seller shall only be responsible to pay legal fees and expenses of Seller’s attorney to prepare documents to transfer the Property to Buyer and to release any liens or mortgages on the Property to allow conveyance of the Property to the Buyer in accordance with the General Warranty Deed. (b) Buyer’s Costs. Buyer shall pay all Closing costs including, but not limited to, title insurance, documentary stamps, recordation fees, transfer taxes, title searches, Buyer’s attorney’s fees, the Buyer’s premium, and all fees and costs associated with Buyer’s financing, if

Buyer’s Initials__________ Seller’s Initials__________ 2

any, prepaid pro-rations, assumed insurance, if applicable, appraisal fees, recording fees, escrow and/or settlement costs, discount points and origination fees. Title insurance will be at the buyer’s option, but is strongly recommended. (c) The Closing and Settlement Agent is agreed to be Stewart Title . (“Escrow Agent”), located at: 8201 Preston Rd, Dallas, TX 75225 . Buyer agrees to pay all charges involved in this closing, including but not limited to: escrow/settlement fee; deed preparation fee; conveyance tax; attorney drafting fee; title policy guaranty fee; the cost of the title insurance premium (which is calculated from the Sales Price and Loan amount for loan policy); tax certificate; and recording fees. 8. EARNEST MONEY/ESCROW AGENT. Concurrently with the execution and delivery of this Agreement, Buyer shall deliver Earnest Money Deposit (“Earnest Money Deposit”) made payable to the Escrow Agent in an amount equaling ten percent (10%) of the total Purchase Price, (less any previously submitted Registration Deposit). Buyer is aware and acknowledges that upon Seller’s acceptance of Buyer’s offer, the Earnest Money Deposit becomes Non-Refundable, except for failure to deliver good title. Buyer and Seller hereby acknowledge and agree that Escrow Agent shall hold in a non-interest bearing escrow account and deliver the Earnest Money in accordance with the terms and conditions of this Agreement. The Escrow agent shall be relieved of all liability and held harmless by both Seller and Buyer in the event Escrow Agent makes any disbursement of the Earnest Money in accordance with the terms and provisions of this Agreement. 9. DISCLAIMER OF WARRANTIES; “AS-IS” PURCHASE. Buyer accepts the Property in an “AS IS, WHERE IS” condition at the time of Closing, including but not limited to any hidden defects, known or unknown and understands that this transaction is not subject to an inspection contingency. (a) Buyer acknowledges and agrees the sale of the Property hereunder is and will be made on an “AS IS, WHERE IS” basis that, except as may otherwise be expressly provided in this Agreement, Buyers are purchasing and acquiring the Property without any representation, warranty, or assurance of any kind whatsoever, express or implied, oral or written, by the Seller, Agent, broker, employee, Heritage, or other representative of the Seller. Buyer acknowledges and agrees that (i) any environmental or other report with respect to the Property which is delivered or made available by the Seller to Buyer shall be for general information purposes only, (ii) Buyer shall not have any right to rely on any such report delivered or made available by the Seller to Buyer, but rather will rely on its own inspection and investigation of the Property and any reports commissioned by Buyer, and (iii) neither the Seller, any affiliate of the Seller, nor the person or entity which prepared any such report delivered or made available to Buyer shall have liability to Buyer for any inaccuracy in or omission from any such report. (b) Buyer knowingly, voluntarily, unconditionally, and irrevocably waives, releases, and discharges Seller, Heritage, Broker, Agent, and Escrow Agent from any claim that Buyer may otherwise have had with respect to the Property, the Auction, this Auction Purchase Agreement, and this real estate transaction and waives any right to terminate this Agreement. (c) Buyer acknowledges that having been given a sufficient time to inspect the Property, and to review the Bidder’s Due Diligence Package or other material given to the Buyer, Buyer is relying solely on its own investigation of the Property and revenue and expenses that may be received or incurred in arriving at its decision to purchase the Property and has not relied upon any plans, brochures, literature, advertisements, schematics, dimensions, square footage, surveys, maps, illustrations, sketches, projections, representation, warranties, statements or estimates of any nature written, or oral, by Seller, Agent, Broker, Employee, Heritage, or any representative or employee of them, in deciding to purchase the Property. Seller makes no representation or warranty as to the truth, accuracy or completeness of any materials, data or information delivered by Seller to Buyer in connection with the transaction contemplated by this agreement. Instead, Buyer is relying solely upon Buyer’s independent verification of legal, factual and other inquiries, due diligence, inspection, investigation, and findings with respect to the Property, the surrounding area, the Auction, the Terms of Auction, or including without limitation to (i) environmental matters relating to the Property of any portion thereof, (ii) geological conditions, including but not limited to, subsidence, subsurface conditions, fault zones, water table conditions, underground reservoirs (including limitations to the withdrawal of water), (iii) any water, stream, river, flood, hazards, (surface or underground), (iv) drainage issues, conditions or problems, (v) soil conditions including the existence of instability, past soil remediation, soil additions, conditions of soil fill, or susceptibility to landslides or the sufficiency of undershoring, (vi) the zoning or other land use restrictions which the Property or any portion thereof may be subject, (vii) the availability of any utilities to the Property or any portion thereof including without limitation, water sewage, gas, electrical, and services, (viii) usages of adjoining Property, (ix) access to the Property or any portion thereof, (x) the value, compliance with the plans and specifications, size, location, age, use, design, quality, description, durability, structural integrity, operation, title, physical or financial condition of the Property, or any portion thereof, or any income, expenses, charges, liens, encumbrances, rights, or claims on or affecting or pertaining to, the Property of any part thereof, (xi) the presence of hazardous materials in or on, under or in the vicinity of the Property, (xii) the condition or use of the Property in compliance of the Property with any or all past present or future Federal, State, or local ordinances, rules, regulations, or laws, building, fire or zoning ordinances, codes or other similar laws, (xiii) the existence or non-existence of underground storage tanks, (xiv) any matter affecting the stability or integrity of the land or improvements which are part of the property, (xv) the potential for further development of the Property, (xvi) the existence of vested land use, zoning or building entitlements affecting the Property and (xvii) the merchantability of the Property or fitness of the Property for any particular purpose (Buyer affirming that Buyer has not relied on Seller’s skill or judgment to select or furnish the Property for any particular purpose, and that Heritage, escrow agent, the Seller or any broker makes no warranty that the Property is fit for any particular purpose). (d) Seller, any Broker, and Heritage shall not be liable to Buyer for any relief, including, but not limited to, adjustment, allowance, damages, reformation, remediation or rescission, based upon the failure of the Property to conform to any specific condition, expectation, standard, or any third-party documents or information. (e) Buyer shall look only to Seller, and not to Heritage Escrow Agent, or any broker with respect to all matters regarding the sale of the Property and this Purchase Agreement.


10. TITLE. Buyer acknowledges that they have received and reviewed the Preliminary Title Commitment provided by Seller prior to bidding. At settlement, Seller shall convey to Buyer good and marketable title free of all liens, except as otherwise indicated herein and subject only to such restrictions and easements as shall then be of record which do not affect the use of the property for residential purses or render the title unmarketable in accordance with the terms and conditions of the auction. Buyer acknowledges and agrees to accept title to the Property subject to (i) all standard exclusions and printed exceptions set forth in the owner’s title insurance policy including all matters that would be disclosed by a current and accurate survey of the Property; (ii) liens for taxes not yet due and payable; any dues, taxes and assessments will be prorated between and Seller at Closing (iii) public utility easements; (iv) all other easements, covenants, restrictions and rights-of-way affecting the Property; (v) rights of parties in possession; and (vi) all title exceptions referenced in the Title Commitment and the General Warranty Deed (the foregoing title matters are herein referred to as the “Permitted Title Exceptions”). Any applicable zoning ordinances, other land use laws and regulations, together with taxes for the current year and those matters, if any, which are waived by Buyer pursuant to this Paragraph 10 shall also be deemed Permitted Title Exceptions. 11. DISCLOSURES. (a) LEAD WARNING STATEMENT. If this Property includes pre-1978 residential housing, a lead-based paint disclosure form is attached as Exhibit [C] and to be made part of this Purchase Agreement. In addition, the Seller has provided herein any available records or reports pertaining to the presence of lead-based paint hazards. (b) MOLD DISCLOSURE AND WAIVER. Mold is naturally occurring and may cause health risks or damage to property. If Buyer is concerned or desires additional information regarding mold, Buyer should contact an appropriate professional. If applicable, Buyer agrees to execute a “Mold Disclosure and Waiver” (“Mold Waiver”) and to be made part of this Purchase Agreement, and has executed this “Mold Waiver” and it is incorporated herein by reference. (c) RADON GAS. Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Texas . Additional information regarding radon and radon testing may be obtained from your county health department. (d) SEX OFFENDER INFORMATION. Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an internet web site maintained by the Department of Justice at www.nsopw.gov. Depending on an offender’s criminal history this information will include either the address at which the offender resides or the community of residence and Zip Code in which he/she resides. (Neither Seller, Broker, Heritage, Agent, or their representatives or employees are required to check this website. If Buyer wants further information, the Seller recommends that Buyer obtain information from the registry prior to participating in the auction.) (e) PROPERTY TAX DISCLOSURE SUMMARY. BUYER SHOULD NOT RELY ON SELLER’S CURRENT PROPERTY TAX ON THE PROPERTY AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS MAY TRIGGER A REASSESSMENT FOR THE PROPERTY THAT COULD RESULT IN HIGHER TAXES BEING ASSESSED TO BUYER. IF YOU HAVE ANY QUESTION CONCERNING VALUATION OR TAXATION OF THE PROPERTY, YOU SHOULD CONTACT THE COUNTY APPRAISAL DISTRICT OFFICE FOR FURTHER INFORMATION. (f) FLOOD ZONE; ELEVATION CERTIFICATION. Buyer is advised to verify by survey, elevation certificate and the appropriate government agencies which flood zone the Property is in, whether flood insurance is required, and what restrictions apply to improving the Property and rebuilding in the event of casualty. The National Flood Insurance Program may assess additional fees or adjust premiums for pre-Flood Insurance Rate Map (pre-FIRM) non-primary structures (residential structures in which the insured or spouse does not reside for at least 50% of the year) and an elevation certificate may be required for actuarial rating. By execution of this Purchase Agreement the Buyer accepts the existing elevation of the buildings and zone designation of the Property. (g) TAX WITHHOLDING. Buyer and Seller will comply with the Foreign Investment in Real Property Tax Act [FIRPTA] Internal Revenue Code Section 1445, which may require Seller to provide additional cash at Closing if Seller is a “foreign person” as defined by federal law. (h) AGENCY DISCLOSURE. HERITAGE REPRESENTS THE SELLER ONLY IN THE SALE OF THIS PROPERTY, AND IS TO BE PAID A FEE BY THE SELLER PURSUANT TO A SEPARATE WRITTEN AGREEMENT BETWEEN THE SELLER AND THE AUCTION COMPANY. THE AUCTION COMPANY IS NOT ACTING AS AN AGENT FOR THE PURCHASER IN THIS TRANSACTION. ANY THIRD PARTY BROKER/AGENT IS NOT A SUBAGENT OF THE AUCTION COMPANY. (i) SELLER DISCLOSURE: Seller knows of no facts materially affecting the value of the Real Property which are not readily observable and which have not been disclosed to Buyer. Except as provided for in the preceding sentence, Seller extends and intends no warranty and makes no representation of any type, either express or implied, as to the physical condition or history of the Property. Except as otherwise disclosed in writing Seller has received no written or verbal notice from any governmental entity or agency as to a currently uncorrected building, environmental or safety code violation. (j) ADDENDUM. Attached as an Addendum hereto are additional notices and disclosures. 12. SURVEY. A recent survey has not been provided on the Property for this sale. Seller is conveying the Property in accordance with the legal description in the recorded plat. Any additional survey shall be at the Buyer’s option and expense. If said additional survey shows a greater or lesser number of acres, such survey shall not affect the Seller’s obligations under this Agreement and no adjustments will be made to the purchase price. 13. COMMISSIONS & FEES. (a) BROKERAGE. Buyer warrants and represents that Buyer [ ] is [ ] is not represented by a buyer’s agent in this transaction. If Buyer


is represented by a buyer’s agent, the buyer’s agent is: (“Buyer’s Agent”). The buyer’s agent must have performed all requirements of the agent guidelines and execute a Bidder Registration Agreement provided by Heritage. Failure to properly register or comply with the provisions of the guidelines will disqualify the buyer’s agent from receiving any commission. Buyer represents to the Seller that no Agent other than the Seller’s Broker or Buyer’s Agent as defined in this Paragraph was involved in submitting, showing or selling the Property to Buyer and Buyer hereto agrees to indemnify the Seller and Heritage and escrow agent of all claims by any other party. This provision shall survive the Closing and any termination of this Agreement. (b) BROKERAGE COMMISSIONS & FEES. Upon the Closing of the transaction contemplated herein, Seller shall pay Heritage a fee pursuant to the terms of a separate agreement. A two percent (2%) commission based on the High Bid Price (and excluding the Buyer’s Premium amount) will be paid to the qualified, licensed real estate agent representing the Buyer (the “Buyer’s Agent”) provided that such Buyer’s Agent and the Buyer have properly and timely executed and delivered to Heritage the Bidder Registration Agreement – Terms & Conditions provided to Bidder (the “Bidder Registration Agreement”). In order to receive any commission described in this paragraph, the Buyer and Buyer’s Agent must comply with all terms of the Bidder Registration Agreement. Each Bidder and its Buyer’s Agent must execute and deliver to Heritage the Bidder Registration Agreement by the deadline stated on the Bidder Registration Agreement. The Bidder Registration Agreement shall become part of this Agreement. 14. BREACH OF CONTRACT. Buyer and Seller are required and agree to make full settlement in accordance with the terms of the Auction Purchase Agreement and acknowledge that failure to do so constitutes a breach hereof. Buyer acknowledges and is aware that financing or inspection period is not a contingency to this Agreement. Buyer shall be liable for payment of the total Escrow Deposit even if not previously paid. If Buyer fails, neglects or refuses to perform Buyer’s obligations under this Agreement, or is in Default, Seller may elect to treat this Agreement as cancelled, in which case the total Escrow Deposit shall be non-refundable and is retained in escrow (and dispersed per the escrow instructions) as minimum liquidated damages and Seller shall be entitled to all rights and remedies available at law and in equity. Buyer acknowledges and agrees that under no circumstances shall Seller, Heritage, Broker, or other representative be responsible for Buyer’s damages, consequential, actual, punitive, speculative or otherwise. If Seller fails to make full settlement or is in default due to the Seller’s failure to comply with the terms, covenants and conditions of the Agreement, Buyer shall be entitled to pursue such rights and remedies as may be available, at law or in equity, including, without limitation, an action for specific performance of this Agreement and/or monetary damages. 15. CASUALTY. Except as herein provided, all risk of loss with respect to damage to the Property shall be borne by Seller until the date of Closing; thereafter, all risk of loss shall be borne by Buyer. If after effective date of this agreement, but before Closing, the Property is damaged significantly (in the opinion of the Seller) or is destroyed by fire or other casualty or hazard, Seller shall have the option to restore the Property to its pre-casualty condition or to cancel this Agreement and Buyer’s Earnest Money shall be returned as a complete and final settlement to Buyer of all of Seller’s obligations hereunder. Should Seller desire to restore the Property to its pre-casualty condition, Seller shall so notify Buyer and thereafter have 120 days to complete such restoration, with the Closing date to be postponed accordingly. 16. NO RECORDING. Neither this Agreement nor any notice of it shall be recorded in any public records. This Agreement shall be binding on, and inure to the benefit of, the parties and their respective heirs or successors in interest. Without limiting the survival of any other provisions of this Agreement, the provisions of this Section shall survive any termination of this Agreement. 17. ATTORNEY REVIEW. The parties acknowledge and agree that this is an auction sale and not subject to an attorney review period. The parties further acknowledge and agree that they have been given the opportunity to review this Agreement prior to the auction and that once signed, this Agreement becomes a legally binding Agreement. If you do not understand the effect of this Agreement, consult your attorney prior to participating in the auction. Neither Seller, Heritage, Broker, Escrow Agent or any employee or representative thereof, can provide legal advice. 18. WAIVER OF JURY TRIAL. EXCEPT AS PROHIBITED BY LAW, THE PARTIES SHALL AND THEY HEREBY DO EXPRESSLY WAIVE TRIAL BY JURY IN ANY LITIGATION ARISING OUT OF, CONNECTED WITH, OR RELATING TO THIS AGREEMENT OR THE RELATIONSHIP CREATED HEREBY. WITH RESPECT TO ANY MATTER FOR WHICH A JURY TRIAL CANNOT BE WAIVED, THE PARTIES AGREE NOT TO ASSERT ANY SUCH CLAIM AS A COUNTERCLAIMIN, NOR MOVE TO CONSOLIDATE SUCH CLAIM WITH, ANY ACTION OR PROCEEDING IN WHICH A JURY TRIAL IS WAIVED. 19. COSTS AND EXPENSES. A party to this Agreement who is the prevailing party in any legal proceeding or arbitration against any other party brought under with respect to this Agreement, or the transaction contemplated hereby shall be additional entitled to recover court costs, and reasonable attorney’s fees, paralegals’ fees and costs from the non-prevailing party. 20. NOTICES. Any notice or communication, request or other document or demand required or permitted under this Agreement shall be in writing and shall be given by hand delivery, by registered or certified first class mail, courier service, Federal Express or other nationally recognized overnight courier to Seller, Buyer or their respective Attorney. A copy of all notices hereunder shall also be delivered to Heritage and Closing agent. 21. ENTIRE AGREEMENT; AMENDMENT. This written Agreement and Exhibits, Schedules and Addenda attached hereto and made a part of this Agreement signed by Buyer constitute the entire and complete agreement between the parties hereto and supersede any prior oral or written Agreements between the parties with respect to the Property. This Agreement may not be amended, altered, modified or


discharged except by an instrument in writing signed by the Buyer, Seller and Heritage. 22. HEADINGS. All headings in this Agreement are inserted for convenience of reference and shall not affect its meaning or interpretation. 23. SEVERABILITY. If and to the extent that any court of competent jurisdiction holds any provision or any part of this Agreement to be invalid or unenforceable, such holding shall in no way affect the validity of the remainder of this Agreement. 24. ASSIGNMENT. Buyer may not assign this agreement or Buyer’s rights without prior written consent of Seller. Seller’s refusal to consent to an assignment shall not entitle Buyer to cancel this Agreement nor give rise to any claim for damages against the Seller or Heritage. Buyer agrees not to resell the Property to any other registered bidders for a period of 365 days without prior written consent of Seller and Heritage. 25. BINDING EFFECT. The provisions of this Agreement shall bind and inure to the benefit of the Buyer and Buyer’s heirs, legal representatives, successors and permitted assigns and shall bind and inure to the benefit of the Seller and its successors and assigns. 26. COUNTERPARTS. This Agreement may be executed in multiple counterparts all of which when taken together shall constitute an Agreement with the same force and effect of the original Agreement for the sale of Real Estate under the laws of the governing State. 27. ACKNOWLEDGEMENT. The undersigned (“Buyer”), certifies that he or she is of legal age and has full legal capacity and authority to understand, execute and deliver this Agreement on behalf of himself or herself. If Buyer is a for-profit entity, non-profit organization, public agency, trust or other entity, then the person(s) executing this Agreement on behalf of such entity and Buyer certify to Seller that such person(s) has(have) the authority to execute this Agreement on behalf of such entity, and that such entity shall be bound by the matters contained herein. 28. EXHIBITS. All exhibits annexed to this Agreement and the documents to be delivered at or prior to the Settlement are expressly made a part of this Agreement as fully as though completely set forth in it.


Exhibit “A” – Preliminary Title Search / Legal Property Description Exhibit “B” – Sample Warranty Deed

Exhibit “C” – Seller’s Property Disclosures


IN WITNESS WHEREOF the parties hereto have duly executed this Agreement, as of the day and year first above written

SELLERS:

Signature Date Social Security #

Signature Date Social Security # BUYER:

Signature Date

Print Name Social Security # BUYER:

Signature Date

Print Name Social Security # REAL ESTATE BROKER OF RECORD:

Signature Date

Print Name State and License # HERITAGE:

Signature Date

Print Name Title


SAMPLE BANK LETTER OF GUARANTEE

Auctioneer Mike Sadler: TX #16129; CA #RSB2006814; FL #AU3795; IL # 441001478; MA #03121; NYC #1304630; OH #2014000075; Thania Kanewske FL #AU4656; Marina Medina TX #17512; Nate Schar TX #17365; Nate Schar, a real estate broker licensed under the laws of the State of California-License # 01879044; James Ivy, a real estate broker licensed under the laws of the State of

Texas – License No. 472843. Thania Kanewske, a real estate broker licensed under the laws of the State of Florida-License # 3044330.

SAMPLE BANK LETTER OF GUARANTEE

Please be advised, this letter must be on official bank stationery in order to be considered.

Date

Heritage Auctions 3500 Maple Ave, 17TH Floor Dallas, TX 75219 Phone: 214-409-1603 Fax: 214-409-2603

Attention: Auction Manager

RE: 3525 Turtle Creek Blvd Sample Bank Letter of Guarantee Mr./Mrs./ is a customer of our bank and plans to attend your event in Dallas, TX 75219 on November 15, 2017. Please be advised that (Name of Bank) will irrevocably honor and guarantee payment on any check(s) written by Mr./Mrs. up to the amount of $ and drawn on account number . This commitment to assure payment on aforementioned account number expires on (seven business days after the auction date). Should you have any questions, please contact (Bank Contact) at (Contact Phone). Sincerely, (Bank Officer Signature) Name of Bank Officer Title


BIDDER REGISTRION –TERMS AND CONDITIONS

Buyer Initials ___________

BIDDER REGISTRATION AGREEMENT – TERMS AND CONDITIONS AUCTION FOR: 3525 TURTLE CREEK BLVD, UNIT 17B, DALLAS, TX 75219

WEDNESDAY, NOVEMBER 15, 2017

1. Introduction. _____________________ (“Seller”) are the owners of the property located at 3525 Turtle Creek Blvd, Unit 17B, Dallas, TX 75219 (the “Property”). Seller has retained Heritage Luxury Property Auctions, Inc., a Texas corporation (“Heritage”), to sell the Property pursuant to this auction (the “Auction”). Heritage is conducting the Auction through its licensed real estate broker, James Ivy; #472843 (“Broker”) and licensed auctioneer (the “Auctioneer”).

2. Bidder Registration. Bidders must register for the Auction by executing and delivering this Agreement. The form may be submitted in person, by DocuSign, by fax to (214) 409-2457, or emailed to [email protected] prior to the Auction. Upon registering, Bidder will be provided with a bidding number in order to participate in the Auction and bid on the Property. Bidder’s bidding number must be presented when a Bidder is declared by Auctioneer to have placed the Winning Bid. By providing advance written notice to Heritage, a Bidder may appoint a representative to place bids at the Auction on Bidder’s behalf. Any person bidding on behalf of a Bidder must sign the proxy bidder card and registration paperwork and be approved by Heritage prior to the Auction. With Heritage’s prior approval, a Bidder (or its representative) may place bids at the Auction by telephone.

3. Lender Approval. Bidder must be pre-approved for loan amount by a lender from among Heritage’s chosen lenders (“Lender”), or Bidder must provide a bank letter guaranteeing a Purchase Price. The Bidder must deliver to Heritage, in order to bid, a pre-approval commitment from the Lender for the amount Bidder intends to bid or the Letter of Credit prior to the commencement of the Auction.

4. Auction. The Property is more particularly described in the due diligence package concerning the Property previously furnished to each Bidder (the “Due Diligence Package”). The Property is subject to a Reserve. The Property shall not be sold if bidding does not equal or exceed the Reserve. Seller may waive the Reserve at any time prior to the fall of the hammer. If the bid on the Property meets or exceeds the Reserve, Seller shall be deemed to have accepted the highest bid (the “Winning Bid”) from a qualified bidder (the “Buyer”) without limiting condition as to the amount of the high bid or the nature of the Buyer. Following the conclusion of the auction, Seller and Buyer shall execute the Auction Purchase Agreement relating thereto, the form of which is included in the Due Diligence Package (the “Purchase Agreement”). An amount equal to ten percent (10%) of the Winning Bid (the “Buyer’s Premium”) will be automatically added to the Winning Bid to be paid by Buyer. The Buyer’s Premium shall not be considered a real estate commission. The Buyer’s Premium is a fee charged by Heritage to the Buyer for Heritage’s work in bringing the Property to auction. All bids placed by Bidder in the Auction shall be binding on Bidder. Buyer’s purchase of the Property shall not be conditioned or contingent upon Buyer obtaining financing and shall close within thirty (30) days of the Auction. The Purchase Price for the Property shall be paid by Buyer in cash. All decisions of the Auctioneer are final as to the methods of bidding, disputes among Bidders, increments of bidding, and any other matters regarding the auction process that may arise before, during, or after the Auction. The Auctioneer reserves the right to deny any person admittance to the Auction or expel anyone from the Auction who attempts to disrupt the Auction. The Auctioneer reserves the right to announce additional terms and conditions of the sale of the Property prior to or during the course of the Auction. All announcements made at the Auction shall supersede any conflicting prior oral or printed statements.

5. Property. If the Bidder places the Winning Bid, Bidder and Seller shall execute a Purchase Agreement pursuant to which Seller will agree to convey the Property to Bidder by warranty deed, free and clear of all liens and encumbrances, except for the liens and encumbrances specified in the title commitment (the “Title Commitment”) and warranty deed (the “Deed”) provided pursuant to the Purchase Agreement. Buyer will purchase the Property subject to, and the closing of the purchase of the Property by Buyer pursuant to the Purchase Agreement shall not be conditioned on, any state of facts an accurate survey or personal inspection of the Property may reveal, any existing rights-of-way, easements, encroachments, rights or claims of parties in possession, restrictive and protective covenants, flood zones, zoning or subdivision regulations, building ordinances, governmental agencies regulations, environmental conditions, hazardous materials, leases or tenancies, any mineral rights, and all title exceptions as set forth in the Title Commitment and Deed.

6. INSPECTION RECOMMENDED; DISCLAIMER. PERSONAL ON-SITE INSPECTION OF THE PROPERTY IS RECOMMENDED AND BIDDER IS ADVISED TO INDEPENDENTLY VERIFY ALL INFORMATION BIDDER MAY DEEM IMPORTANT. EXCEPT AS OTHERWISE EXPRESSLY STATED IN THE PURCHASE AGREEMENT, THE PROPERTY IS BEING SOLD “AS IS, WHERE IS” AND “WITH ALL FAULTS” AND HERITAGE, SELLER AND AUCTIONEER HAVE NOT MADE, DO NOT MAKE AND WILL NOT MAKE, AND HEREBY DISCLAIM, ANY REPRESENTATION OR WARRANTY, WHETHER EXPRESSED OR IMPLIED OR STATUTORY, WHETHER ORAL OR WRITTEN, WITH RESPECT TO THE PROPERTY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY AS TO ITS VALUE, CONDITION, SQUARE FOOTAGE, SUITABILITY, MERCHANTABILITY, OPERABILITY, ZONING OR SUBDIVISION REGULATIONS, MINERAL RIGHTS, ENVIRONMENTAL CONDITION OR FITNESS FOR A PARTICULAR USE OR


PURPOSE. NO GUARANTEES ARE GIVEN AS TO THE AVAILABILITY OF UTILITIES OR ACCESSES, OR ALLOWABLE OR PERMITTED USES ON THE PROPERTY.

7. Property Inspection. All information contained in the auction brochure, the Due Diligence Package and all promotional materials, including, but not limited to, photographs, directions, acreage, square footage, dimensions, zoning, maps in the brochure and other maps used for promotion, environmental conditions, taxes, etc., was provided by or on behalf of Seller and the tax assessor’s office, and is believed to be correct; however, neither Seller nor Heritage nor Auctioneer makes any promise, representation, guarantee, or warranty as to the accuracy or completeness of such information. There is no obligation on the part of Seller, Heritage or Auctioneer to update any information. Buyer and its representatives shall be responsible for verifying all acreage and square footage amounts of the Property. The Property has not been surveyed for this Auction. Seller will convey the Property in accordance with the legal description contained in the Deed. Buyer should retain its own professionals to conduct and/or verify any survey of the Property. Should Buyer desire a survey, it shall be at Buyer’s option and expense. Should the final survey show a greater or lesser number of acres than recited on the survey sales map, it will not affect the purchase and no adjustment will be made to the Purchase Price of the Property. Certain disclosures concerning the Property are attached hereto as Schedule B.

8. Earnest Money Deposit. If Bidder is declared by the Auctioneer to have placed the Winning Bid, Bidder shall deliver at the end of the Auction to an escrow agent designated by Heritage (the “Escrow Agent”) an earnest money deposit in an amount equal to at least ten percent (10%) of the of the sum of the Winning Bid and the Buyer’s Premium (the “Earnest Money Deposit”), less an amount equal to the Bid Deposit. The Earnest Money Deposit may be paid by wire transfer, by certified check or by personal check. If Bidder places the Winning Bid by Telephone, the Earnest Money Deposit must be delivered by wire transfer of immediately available funds to Escrow Agent within 24 hours following the end of the Auction.

9. Purchase Agreement. If Bidder is declared by the Auctioneer to have placed the Winning Bid, Bidder shall immediately execute and deliver the Purchase Agreement. NO CHANGES BY BUYER TO THE PURCHASE AGREEMENT WILL BE PERMITTED. If for any reason the Buyer fails or refuses to deliver the Earnest Money Deposit or to execute the Purchase Agreement immediately after being declared by Auctioneer to have placed the Winning Bid, Seller and Heritage reserve the right to declare the Bidder’s rights with respect to the Auction and the Property forfeited and may resell the Property and retain the Bid Deposit as liquidated damages. Neither Seller, Heritage nor any of their respective brokers or representatives is making any representation or warranty as to the manner in which the Auction will be conducted. The Purchase Agreement shall incorporate the terms of this Agreement.

10. Closing. The closing of the purchase and sale of the Property pursuant to the Purchase Agreement shall occur on or before December 15, 2017 or on such other date as provided in the Purchase Agreement (the “Closing”). All deposits and down payments made by Bidders and Buyer shall be held by the Escrow Agent in a non-interest bearing escrow account. Heritage shall not be involved in any way with the closing of any real estate transaction. The Closing will be handled exclusively by third-party real estate professionals.

11. Closing Costs. At Closing, all ad valorem taxes and any other applicable taxes and fees (including, without limitation, any county and fire district taxes) for the Property shall be prorated between Buyer and Seller based upon the applicable number of days the Property is owned by Seller versus owned by Buyer. Seller will pay the fee for the preparation of the cost of preparing legal documents to transfer the Property and to release any liens or encumbrances on the Property to allow conveyance to the Buyer in accordance with the Purchase Agreement. Buyer shall pay all other closing costs, including (without limitation) Deed recording fees, any applicable transfer taxes and/or deed stamps, and all title searches, title insurance and surveys.

12. DISCLAIMER REGARDING HERITAGE AND AUCTIONEER. BIDDER AND BUYER SHALL LOOK ONLY TO SELLER AS TO ALL MATTERS REGARDING THE AUCTION, THE PROPERTY AND THE PURCHASE AGREEMENT, AND HERITAGE LUXURY PROPERTY AUCTIONS, INC., AUCTIONEER AND THEIR RESPECTIVE AFFILIATES AND REPRESENTATIVES MAKE NO REPRESENTATIONS OR WARRANTIES CONCERNING THE PROPERTY AND SHALL NOT BE RESPONSIBLE OR LIABLE IN ANY WAY TO BIDDER, BUYER, ANY BROKER OR ANY OTHER PERSON OR ENTITY WITH RESPECT TO THE AUCTION, THE PROPERTY OR THE PURCHASE AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY CLAIM RELATING TO SELLER’S BREACH OF THE PURCHASE AGREEMENT. ANY THIRD PARTY BROKER IS NOT A SUBAGENT OF HERITAGE OR ANY OF ITS AFFILIATES OR REPRESENTATIVES AND NONE OF HERITAGE OR ANY OF ITS AFFILIATES OR REPRESENTATIVES SHALL HAVE ANY OBLIGATION WHATSOEVER TO MAKE ANY PAYMENT TO ANY BROKER.

13. AUCTIONEER DISCLOSURE. THE AUCTIONEER IS ACTING EXCLUSIVELY AS THE AGENT FOR SELLER IN THIS TRANSACTION AND IS TO BE PAID A FEE BY SELLER PURSUANT TO A SEPARATE WRITTEN AGREEMENT BETWEEN SELLER AND THE AUCTIONEER. THE AUCTIONEER IS NOT ACTING AS AGENT IN THIS TRANSACTION FOR THE BIDDER OR BUYER OR ANY BROKER. ANY THIRD PARTY BROKER IS NOT A SUBAGENT OF AUCTIONEER AND AUCTIONEER SHALL HAVE NO OBLIGATION WHATSOEVER TO MAKE ANY PAYMENT TO ANY BROKER.

14. Bidder’s Representations and Warranties. Bidder hereby represents and warrants that: (a) Bidder is in no way, shape, or form bidding on behalf of Seller, or for Seller's benefit, (b) Bidder has no personal, business, or other relationship with the Seller, (c) Bidder has the financial resources necessary to complete the timely acquisition of the Property, as and when required, pursuant to this Agreement and the Purchase Agreement, at the bid price offered by the Bidder, plus the required Buyer's Premium, (d) Bidder is of legal age and has full legal capacity and authority to understand, execute and deliver this Agreement, (e) Bidder has received and carefully reviewed and understood, prior to the execution of this Agreement, the Due Diligence Package and all of the materials included therein, (f) Bidder has been given the opportunity to obtain all professional testing and inspection of the Property, (g) Bidder has independently inspected and reviewed the


Property, including (without limitation) the following matters regarding the Property: (i) the title of Seller to the Property; (ii) the condition and state of repair and/or lack of repair of all improvements on the Property; (iii) the existence and condition of any and/or all personal property at the Property; and (iv) the nature, provisions and effect of all heath, fire, environmental, building, zoning, subdivision and all other use and occupancy laws, ordinances and regulations applicable to the Property.

15. Bidder’s Acknowledgements. Bidder acknowledges and agrees that Bidder is fully and solely liable for the deposits required under this Agreement, and the full Purchase Price of the Property should Auctioneer declare that Bidder has placed the Winning Bid. Bidder further acknowledges and agrees that: (a) EXCEPT AS OTHERWISE EXPRESSLY STATED IN THE PURCHASE AGREEMENT, THE PROPERTY WILL BE SOLD “WHERE IS” IN AN “AS IS” CONDITION WITH NO WARRANTY, EXPRESS OR IMPLIED, ABOUT SUCH CONDITION AND BIDDER ACCEPTS ALL DEFECTS REGARDING THE PROPERTY, BOTH APPARENT AND LATENT, AT BIDDER’S OWN, ABSOLUTE AND EXCLUSIVE RISK, (b) none of Heritage employees or Auctioneer or any of their respective representatives will have any liability or obligation whatsoever for the physical condition of the Property or for any inaccuracy in or omission from any written information and materials regarding the Property, including, but not limited to, inaccuracies made in reports drafted by third parties, such as title reports, surveys and environmental reports, or changes concerning the Property between the date of such reports, surveys, written information and materials and the date hereof, (c) because of the pace of the Auction bidding, Auctioneer is not able, and therefore not obligated, to recognize nor record each of the Bidders at any bid level during open outcry except the high bidder, and (d) any collusion between Bidders is strictly prohibited by this Agreement and applicable law.

16. Remedies. In the event the bidder is awarded the Property as having placed the Winning Bid and thereafter fails to Close the Purchase within the time stated hereinabove through no fault of the Seller, all deposit bidder has made into escrow shall be awarded to Heritage up to an amount equal to 5% percent of the Winning Bid. Seller may elect to commence such actions as the Seller has for breach of Contract including voiding the sale. If the sale is voided Heritage shall retain the Buyer’s escrowed deposits. If the Seller shall not close the Property through no fault of the Buyer, Heritage is released from any and all claims pertaining to the Seller’s default. Additionally, Heritage is not obligated to take any action against the Seller for the Seller’s breach.

BINDING ARBITRATION SHALL BE THE EXCLUSIVE REMEDY FOR ANY AND ALL DISPUTES, CLAIMS OR CONTROVERSIES, WHETHER STATUTORY, CONTRACTUAL OR OTHERWISE, BETWEEN THE PARTIES HERETO ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE AUCTION (INCLUDING, BUT NOT LIMITED TO, THE AMOUNT OF DAMAGES, OR THE CALCULATION OF ANY OTHER AMOUNT OR BENEFIT DUE) (COLLECTIVELY, “DISPUTES”). THE PARTIES WAIVE THE RIGHT TO ADJUDICATE THEIR DISPUTES UNDER THIS AGREEMENT OUTSIDE THE ARBITRATION FORUM PROVIDED FOR IN THIS AGREEMENT, EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT. IF PARTY COMMENCES AN AUCTION PERTAINING TO A DISPUTE, THE COURTS HAVING EXCLUSIVE JURISDICTION OF SUCH AN ACTION ARE THOSE SITTING IN THE COUNTY OF DALLAS, STATE OF TEXAS. THE PARTIES EACH WAIVE THE RIGHT TO A JURY TRIAL IN THE EVENT THAT THE DISPUTES ARE DETERMINED EITHER IN ARBITRATION OR COURT, THE PREVAILING PARTY SHALL BE AWARDED THEIR REASONABLE ATTORNEY FEES. A PREVAILING PARTY IS ONE THAT PREVAILS ON A MAJORITY OF THE CLAIMS OR THE DEFENSE OF SUCH CLAIM.

17. Buyer’s Agent Registration. A two percent (2%) commission/fee based on the Winning Bid Amount (and excluding the Buyer’s Premium amount) will be paid to the qualified, licensed real estate agent representing the Buyer (the “Buyer’s Agent”) provided that such Buyer’s Agent and the Buyer have properly and timely executed and delivered to Heritage this Agreement and submitted Bid Deposit. In order to receive any commission described in this paragraph, the Buyer and Buyer’s Agent must comply with all terms of this Agreement. Each Bidder and its Buyer’s Agent must execute and deliver to Heritage this Agreement by the deadline stated. This Agreement shall be incorporated into the Purchase Agreement. Commission will be paid only upon final closing, title transfer and when Property has been settled in full. No commission/fee will be paid on any non-arm’s length transaction involving Agent or any member of the Agent’s immediate family, or business. AGENT ACKNOWLEDGES THAT HE/SHE IS NOT A SUBAGENT OF HERITAGE, AND THE CLIENT ACKNOWLEDGES THAT AGENT IS WORKING ON BEHALF OF THE CLIENT AS A BUYER’S AGENT.

In order to be entitled to a commission/fee, the Agent must:

a) Represent and warrant that Agent: (i) is a licensed real estate Agent/Broker in the state in which the Property is located, and (ii) shall fully abide by the National Association of Realtors’® Code of Ethics.

b) Must inspect the Property with the client during Heritage’s listing term, attend the auction to reinforce value and encourage bidding.

Heritage is not acting in any capacity as an Agent/Broker for any Bidder; nor acting in any capacity as an Agent/Broker for the Seller.

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed effective as of the date first above written.

Bidder Name:

Signature: Date:

Mailing Address: City, State, Zip:

Phone Number: Email:


Last 4 of Social Security Number:

Agent Name: Firm:

Signature: Mailing Address:

License Number: City, State, Zip:

Date: Phone and Email: